APR
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This content is provided for general educational purposes only and does not constitute financial or mortgage advice.
Definition
Annual Percentage Rate — the cost of credit expressed as a yearly rate, including interest and certain fees.
Explanation
APR helps you compare loan offers by showing the total cost per year. It is often higher than the interest rate because it includes fees.
Example
A loan with a 6.5% interest rate might have an APR of 6.8% after including origination and other fees.