Definitions for

**"ANNUAL PERCENTAGE RATE"****Related Terms:**Apr, A.p.r, Annual percentage rate (apr, Apr - annual percentage rate, Annual percentage rate - apr, Aapr, Rate, Interest rate, Til, Comparison rate, Ear, Effective interest rate, Annual equivalent rate, Interest accrual rate, Annual interest rate, Aer, Discount points, Point, Discount point, Interest rates, Truth-in-lending, Points, Interest, Apy, Origination points, Lending rate, No-cost loan, Truth in lending, Money factor, Daily periodic rate, Loan origination fees, Periodic rate, Truth in lending act, Origination fees, Loan origination fee, Truth in lending disclosure, Base loan amount, Loan origination fee or points, Annual percentage yield, Origination fee, Added to loan, Discount loan, Effective annual interest rate, Arrangement fee, Cost of funds, Discount, Truth-in-lending law, Monthly periodic rate, Effective rate, Finance charge

The interest rate being charged on a debt, expressed as a yearly rate. Credit cards often have several different APR's - one for purchases, one for cash advances and one for balance transfers. Some lenders may increase the APR if a payment is late.

The rate of annual interest charged on a loan.

An interest rate based on the cost of credit and expressed as an annual percentage.

Also known as A.P.R. the Annual Percentage Rate is the cost of your credit expressed in terms of an annual rate. The A.P.R. takes into account "points" or "closing costs" that may be included in your loan amount and is often higher than your interest rate for this reason.

Standard measure of true interest on a loan measured over one year, reflecting the cost of paying on a monthly basis.

This is used to provide consumers with the true annual cost of a loan, expressed as a percentage. By law, the APR has to be shown by banks and building societies alongside their quoted rates for each mortgage. It incorporates all ongoing costs, interest charges and arrangement fees.

The yearly cost of a loan, including interest, and all fees, expressed as a percentage, calculation based on formula provided by HKAB

(APR) the annual effective rate of the mortgage which is made up of the interest rate, fees and charges that incur during the contract period.

Is the cost of a loan or overdraft expressed as an annual percentage of the balance of the loan. To calculate the interest rate, simply divide the APR by 12, so if the APR is 18% the monthly rate is 1.5%. This includes all costs.

The total financing costs associated with a loan on an annualized basis, divided by the amount borrowed. As defined by Federal Reserve Regulation Z and the Truth-in-Lending Act, this is a precisely calculated measure of the cost of a loan. The Truth-in-Lending Act and Regulation Z have specific requirements covering both how to calculate and how to disclose APRs.

When you borrow money, this rate should always be quoted to you. It's the percentage rate which your loan will cost you each year, including all charges. Incredibly, APRs for credit cards can be as much as 30%.

The Annual Percentage Rate is the cost of credit. When you open a credit card account, you agree to pay a percentage of the outstanding balance each month as a finance charge. The APR is the rate of interest you are charged, expressed on a yearly basis.

The interest rate, which reflects the total finance charges of a mortgage as a yearly rate.

This is an indicator used to compare interest rates. It takes into account the costs involved in setting up the mortgage, any discount periods, how often interest is calculated and calculates what the average rate of interest will be over the life of the loan. All lenders that comply with the consumer credit act must ensure that the the borrower is informed of the APR.

The yearly interest charge applicable to outstanding credit balances for one year. Often calculated as the monthly rate times 12.

The yearly cost of a mortgage, including interest, mortgage insurance, and the origination fee ( points), expressed as a percentage.

The APR reflects the cost of your mortgage loan at a yearly rate. It may be higher than the note rate because it also includes points and fees paid by the borrower. This allows the borrower to compare two offers at the same note rate, and determine which one has the lowest costs - the one with the lower APR has the lower closing costs.

The total interest payable on a loan Balloon Optional payment at the end of a Contract Purchase agreement which pays to buy the vehicle. Often clients return the vehicle and replace with new one.

The annual percentage rate or â€œAPRâ€ is the amount of money that is spent on credit over a years time. The duration of the loan, the finance charges, and amount financed are all used to factoring the percentage. This is different that the interest rate because it includes all of the expenses in obtaining the loan. The lender is required by law to disclose the annual percentage rate to the consumer.

Advertised rate of interest per annum. (APR)

The cost of credit that consumers pay, expressed as a simple annual percentage.

The APR is the interest rate figure that indicates the total cost of borrowing, including any charges. When you borrow money, every lender is required by law to quote this rate. The APR is the best way of comparing like with like. It was introduced as part of the Consumer Credit Act of 1974 and is mostly used for credit cards, personal loans and mortgages.

This is the true cost of the borrowing, including the amount lent, the interest charged and any fees.

This is the true measure of the borrower's credit cost, taking into account the time value of money, interest rates, dollar amounts, and points.

See effective interest rate.

This is a formula intended to give you the true cost of borrowing money. It is calculated as the interest that would be charged over the course of a year.

A percentage that results from an equation considering the amount financed, the finance charges, and the term of the loan. It is not necessarily the loan's interest rate. APR was created to help consumers more easily compare loans.

APR. The yearly cost of finance.

When you borrow money, this rate should always be quoted to you. It's the percentage rate which your loan will cost you each year, including all charges. Incredibly, APRs for credit cards can run to around 22%.

This is the total yearly cost of a mortgage stated as a percentage of the loan amount. The base interest rate, primary mortgage insurance, and loan origination fees are used to calculate this percentage. Because the APR includes prepaid finance charges this rate will be higher than the base interest rate. This figure is disclosed on the Truth in Lending statement (TIL) and is part of the initial application packet that a borrower must sign.

(APR) The true annual rate at which interest is charged on a loan.

A numerical figure which expresses (on an annual basis) the charges imposed on the borrower to obtain a loan (such as interest, discount points and other costs).

The annual cost of a mortgage. The APR is often not the same as the mortgage's interest rate because its calculation takes into consideration compounded interest, the amount financed, the finance charges, and the term of the loan.

Under the Truth-In-Lending Regulation, the APR is considered the true rate of interest charged for the loan. The APR includes the quoted interest rate on the loan plus all additional service and finance charges associated with the loan.

Annual Percentage Rate represents the cost of your loan as a yearly rate. It in not the interest rate; it is calculated using your current interest rate, any fees, and for a student loan, the number of years of repayment.

(APR) The rate required by Truth in Lending laws. It is designed to show customers the total cost of credit, including the stated interest rate plus certain finance and service charges. See also Truth in Lending Act.

This is meant to show the true cost of borrowing and adjusts the notional interest rate to take account of all the initial fees and ongoing costs to reflect the real cost of borrowing throughout the entire mortgage term.

A term used in a truth-in-lending act to represent the percentage relationship of the total finance charge to the amount of the loan. The APR reflects the cost of your mortgage loan as a yearly rate. It may be higher than the interest rate stated on the note because it includes, in addition to the interest rate, points and fees paid by the borrower.

Stands for ‘annual percentage rate'. A figure, expressed as a percentage, which incorporates the interest charged upon the credit card as well as any additional fees.

The APR is the percent of the loan that is paid in interest each year, including any additional costs and fees. APR is also called actual percentage rate.

APR is the interest charged on loan. APR includes not only the interest payable over the term but also other fees and charges that a lender adds to the loan.

The APR is an attempt to provide a true cost of borrowing as a standard measure. This will take into account not only the interest rate but also other ancillary costs such as valuation fees, legal and administration fees and higher lending charges. This is a recommended way for clients to compare the overall cost of a mortgage between various lenders. All lenders should include similar costs in calculating the APR and the final percentage is supposed to indicate the overall costs of borrowing on a particular scheme expressed on an annual basis. Thus clients can have a clearer view of the true cost of a loan instead of the flat interest rate initially quoted. However the borrower should bear in mind that the APR is not the only factor to take into account when choosing a lender.

The actual percent of the loan that is paid in interest per year (i.e., the cost of credit on an annual basis). This includes any additional costs and fees (i.e., interest and all prepaid expenses that are required) associated with the loan. It is sometimes referred to as actual percentage rate or APR.

The annual percentage rate APR is an interest rate that is different from the note rate. It is commonly used to compare loan programs from different lenders. The Federal Truth in Lending law requires that mortgage companies disclose the APR when they advertise a rate. Typically the APR is found next to the rate.

The cost of borrowing money or the interest paid on deposit accounts, expressed as a percentage per year.

APR indicates the amount of interest payable on outstanding balances. It represents the annual cost of the credit as a percentage. Barclaycard Business Charge Card Accounts do not have an APR as balances are settled in full each month, so no interest is charged.

The APR is a calculation based on a government formula designed to reflect the true annual cost of borrowing, expressed as a percentage. It includes the interest, points, mortgage insurance, and other various fees associated with the loan. The rate is also adjusted for the time value of money, meaning that dollars paid by the borrower early on carry a heavier weight than dollars paid years later. An important note, the APR is calculated on the assumption that the loan completes its full term, and is therefore potentially deceptive for borrowers who intend to sell early.

APR is a measurement of the full cost of a loan including interest and loan fee expressed as a yearly percentage rate. This is one way to compare the cost of loans offered by different lenders.

The actual cost of a mortgage loan expressed as a yearly rate. The APR will be higher than the interest rate stated on the application and note if it includes fees which are categorized as pre-paid finance charges such as: interest, discount points, origination fee, required mortgage insurance and other related fees. The Truth in Lending Act requires lenders to disclose an APR to assist the borrower in measuring the actual cost of a loan on an annualized basis.

The yearly interest percentage of a loan. A rate which reflects the loan's total finance charges, interest, points, and other fees.

APR reflects the note rate charged on the loan adjusted for prepaid interest and financing costs you pay in obtaining the loan. It is used as a tool for comparing loan terms amongst available loans and lenders. The government requires lenders to disclose APR in an effort to protect borrowers; however, APR is easily manipulated and often misleading.

The APR, shown on your mortgage papers, is a standardized way of showing you the total cost of borrowing money. The APR is a combination of the interest rate charged by the creditor along with any fees they might charge. The fees are expressed in percentages and added to the actual interest rate to come up with the total APR.

A term defined in section 106 of the federal Truth in Lending Act (15 U.S.C. 1606), which expresses on an annualized basis the charges imposes on the borrower to obtain a loan (finance charges), including interest, discount and other cost such as prepaid items.

The rate that interest is charge to the account for any unpaid balances expressed as an annual rate. A charge of 1% per month would be expressed as an APR of 12

The actual interest rate you would have paid on your mortgage, including all up-front costs such as points, title insurance, appraisal, etc., if you kept your loan for the full term (say 30 years). This is only accurate on fixed-rate loans, and only truly reflects your costs if you keep the loan 30 years.

The yearly percentagerate of the finance charge. The annual percentage rate will be a fixed or variable rate. See "Fixed Rate" or "Variable Rate" for descriptions.

A measure of the total cost of your mortgage expressed as a yearly interest rate. The APR is usually higher than the advertised interest rate as it includes interest, points, and other finance charges. It is designed to help you compare and determine the relative cost of loans you are considering.

(APR)- Rate at which interest is applied to applied to an account over the time period of one year.

the APR expresses the true rate of interest charged for the loan, on a yearly, annualized basis, because it consists of all the financing costs of the transaction. The APR is higher than the actual mortgage interest rate because of related financing costs (such as discount points, origination fees, mortgage insurance, prepaid interest, etc.).

Rate which considers all the added cost to a given loan. It is a function of the interest rate, loan amount, total added cost, and the terms.

APR): This is not the Note rate for which the borrower applied. The Annual Percentage Rate (APR) is the cost of the loan in percentage terms taking into account various loan charges of which interest is only one such charge. Other charges which are used in calculation of the Annual Percentage Rate are Private Mortgage Insurance or FHA Mortgage Insurance Premium (when applicable) and Prepaid Finance Charges (loan discount, origination fees, prepaid interest and other credit costs). The APR is calculated by spreading these charges over the life of the loan which results in a rate higher than the interest rate shown on your Mortgage/Deed of Trust Note. If interest was the only Finance Charge, then the interest rate and the Annual Percentage Rate would be the same.

The rate which takes into consideration all costs, interest charges and arrangement fees so that you can compare your credit facilities.

The effective rate of interest for a loan per year â€“ includes costs of obtaining the loan combined with the actual interest rate, expressed as an annual rate (higher than the actual interest rate).

The total yearly cost of a mortgage stated as a percentage of the loan amount. It is higher than the interest rate because it includes interest, fees, points, and mortgage insurance. The APR gives you a tool to compare various kinds of mortgages with different lending institutions.

The total yearly cost of a mortgage stated as a percentage of the loan amount. Factors a few other loan costs besides the interest rate including primary mortgage insurance and loan origination fee.

The APR is the cost of a mortgage, stated as a yearly rate, and includes interest, mortgage insurance and loan origination fee.

The interest cost of a loan divided by the amount borrowed.

Calculation which standardizes rates, point, and other costs of a mortgage loan. This figure is disclosed as part of the truth-in-lending statement, which is required by the Federal Truth-In-Lending Act. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account points and other credit costs such as private mortgage insurance, loan discount, origination fees, and other credit costs. The APR allows homebuyers to compare different types of mortgages based on the annual cost for each loan.

This is the cost of your credit expressed in terms of annual rate. Because you may be paying "points" and other closing costs, the APR disclosed is often higher than the interest rate on your loan. The APR can be compared to the APR for other loans for which you may have applied to give you a fair method of comparing price.

The APR shows the cost of a mortgage loan by expressing it in terms of a yearly interest rate. The APR is often slightly higher than the published interest rate because it takes into account the financing of closing costs or pre-paid percentage points.

The total interest percentage of a loan calculated on an annual basis. Taken into account is the actual (note) interest rate, loan origination fee (points) and primary mortgage insurance (PMI).

The interest rate is the amount of interest you will pay for borrowing money to purchase your home. The APR, on the other hand, typically is higher than the interest rate because it reflects the actual cost of a mortgage as a yearly rate and may include prepaid points, closing costs and other fees. Be careful when you compare APRs from one lender to another as they may not all be calculated identically.

The total cost of your loan expressed as a percentage rate of interest. APR includes the loan's interest rate and all costs associated with the loan such as closing costs and fees. The costs are amortized over the life of the loan.

The total yearly cost of a mortgage stated as a percentage of the loan amount. This includes the base interest rate, mortgage insurance, origination fees, and some other related fees. See your lender for a more complete explanation of what fees are used to calculate your APR.

APR is a figure that is used to compare different rates not only does it take into account the interest rate paid over the term of the mortgage but also other fees such as booking fees, arrangement fees, redemption costs, solicitors fees, etc. Legally it must appear on all illustrations and quotes.

The actual or true rate of interest paid over the life of a loan.

The annual cost of a mortgage, including interest, service charges, points, loan fees, mortgage insurance and other fees. The APR is higher than the stated interest rate on a mortgage because it takes the points, fees, etc., into account.

The total yearly cost of a mortgage stated as a percentage of the loan amount. This rate includes the interest rate plus points and mortgage insurance.

A loan's interest rate plus other loan fees, calculated over the life of the loan. It is a little higher than the interest rate. Disclosure of a loan's APR is required at closing (on the Federal Truth-In-Lending Disclosure form).

(APR) The cost of carrying a balance on a loan expressed as an annual percentage.

Annual percentage rate popularly referred to as the APR of the loan measures the full cost of the loan including interest and loan fees expressed as a yearly percentage rate.

The rate of interest for a loan over a one year period, expressed as a percentage value. This disclosure is required by the federal Truth-In-Lending Law.

the APR shows the cost of a loan by calculating it using a standard formula.

A calculation of the total costs associated with a loan, including interest and fees, expressed as a yearly percentage.

The percentage that a borrower is actually paying for the use of money borrowed, expressed in a standardized, yearly way.

A calculation that expresses the total cost of the mortgage loan as a yearly rate (according to a federally mandated procedure). The APR calculation takes into account monthly interest payments, mortgage insurance, points and certain fees paid at origination. It generally results in a rate slightly higher than the stated interest rate on a loan.

By law, the APR is required to be disclosed to you by the lender. APR is usually the interest rate shown for the mortgage note because it includes up-front costs paid to obtain the loan. The APR does not include the appraisal and credit report. Ask your lender for more information.

The effective rate of interest a borrower pays when all the cost of obtaining credit are included.

The one year rate that is charged for borrowing (or made by investing). By law, credit card companies and loan issuers must show customers the APR.

Everything financed in your mortgage loan package (interest, loan fees, points or other charges) expressed as a percentage of the loan amount (usually slightly above the actual interest rate alone.)

The actual interest rate after adding all prepaid interest charges.

Annual rate of interest paid by a borrower that includes specified fees and charges, as dictated by law and regulation.

The sum of finance charges (interest, loan fees, points) expressed as a percentage of the loan amount.

This is the fixed or variable interest rate you will be charged if you carry a balance on your credit card.

The percentage cost of credit on an annual basis.

APR reflects the interest rate charged on the loan plus prepaid finance charges such as points and financing costs you pay in obtaining the loan.

The yearly interest percentage of a loan as expressed by the actual rate of interest paid, in a uniform manner. For example: 7% add-on interest would be much more than 7% simple interest, even though both would say 7%. The A.P.R. is disclosed as a requirement of federal truth in lending statutes.

The actual average interest rate calculated by using a standard form. APR shows the true cost of the loan. This yearly rate includes loan fees, such as interest, points, mortgage insurance, and other related fees attributed to the loan.

The effective rate of interest for a loan per year. This rate is typically higher that the note rate because it takes into account closing costs. This is one way for our members to compare home equity loans offered by other lenders. However, the APR is sometimes calculated differently by other lenders. It includes interest, mortgage insurance and certain points or credit costs.

The cost of credit expressed as a percentage per year.

The interest rate paid over the course of one year on a mortgage or loan.

An expression of the percentage relationship of the total finance charges to the total amount to be financed, as required under the federal Truth-in-Lending Act.

The cost of a loan, on a yearly basis, expressed in terms of a percentage.

Effective yearly cost of interest rate paid on a loan, also called APR, expressed as a percentage, i.e. 10%. Automobile l enders are required by law to disclose the APR.

This percentage shows the actual cost of a mortgage as a yearly rate and includes the loan rate, points and other fees. Because it includes all finance charges involved with borrowing money, the APR will be higher than the interest rate on the loan.

Your cost of credit plus your mortgage interest rate annualized over the term of your loan.

Yearly rate of interest paid on a loan or investment. Includes advertised interest rate and associated fees.

APR is a percentage calculation of the finance charge portion of financing contact. Note: Consumer lending terminology.

This is not the note rate on your loan. It is the rate, which represents the total cost of the loan, including finance charges.

This is a legal definition which is used to show what the cost of borrowing actually is. As it is a standard definition it enables a potential borrower to compare the costs of various types of mortgage. Every mortgage quotation must show an APR figure.

(APR) the total cost of a loan, plus costs, interest charges and fees shown as a percentage rate.

Effective rate of interest for a loan per year, APR is typically greater than the note rate because it includes closing costs.

Earlier it was solely the rate of interest that was used for comparison. So low interest auto loans failed to satisfy the borrowers because lenders would increase other charges. Therefore, now APR is used. APR takes into account both the rate of interest and other combined charges.

The effective rate of interest for a loan per year. This rate is typically higher than the note rate because it takes into account most of the closing costs. This is one way to compare loan programs offered by different lenders. Caution : the APR is sometimes computed differently by different lenders and can be misleading.

The yearly interest rate or percentage that the cardholder pays on their outstanding balance in the form of interest.

The yearly percentage rate of the finance charge. The card issuer also must disclose the "periodic rate" — the rate applied to your outstanding balance to figure the finance charge for each billing period. Some credit card plans allow the issuer to change your APR when interest rates or other economic indicators — called indexes — change. Because the rate change is linked to the index's performance, these plans are called " variable rate" programs. Rate changes raise or lower the finance charge on your account. If you're considering a variable rate card, the issuer must also provide various information that discloses to you

The yearly rate of interest which includes fees and costs paid to obtain the loan. Lenders are obligated by law to show the APR. The annual percentage rate is calculated by taking the average compound interest rate over the term of the loan, that way borrowers can compare loans.

It is also referred as APR. APR determines finance charges you pay on your account.

The annual cost of credit expressed as a percentage. Required under the Federal Truth and Lending Law to disclose the true annual interest on consumer sales, as well as the total dollar cost and other terms of a loan.

When financing, this is used to determine the percentage of interest one pays to the lender.

The entire cost of borrowing funds, regardless of who pays the charge, stated as a percentage rate. There is a prescribed procedure for this calculation as stated by the Federal Government.

The yearly percentage rate imposed when a balance is held on a credit card. When an outstanding balance is held, this rate is applied to your outstanding balance each month.

The yearly rate of interest calculated by taking average compound interest over the term of the loan. APR takes into account the interest rate, fees, length of repayment and any discounts.

A measurement of the full cost of a loan including interest and loan fees expressed as a yearly percentage rate. APR provides borrowers with a good way to compare different mortgages because all lenders apply the same rules in calculating the annual percentage rate.

The true/actual cost of the mortgage as a yearly rate. Disclosed on the Truth and Lending statement.

The term used in the Truth and Lending Act. It is an actuarial representation of the total financing cost of credit expressed as a percent per annum. The annual percentage rate (APR) is calculated similarly across different institutions.

A yearly rate of interest that includes fees and costs paid to acquire the loan. This rate may be higher than the stated note rate on the mortgage because it takes into account points and other credit costs. The APR allows borrowers to compare different types of mortgages based on the annual cost for each loan.

Or Interest Rate. The annual rate a consumer incurs on borrowing loan. APR is calculated in percentage. For example, a $75 due charge for the borrowed $1,000 has an APR of 7.5%.

APR is a measurement of the full cost of a loan expressed as a yearly percentage rate. The APR includes the interest, points, loan fees, and other charges associated with closing a loan. Disclosure of the APR is required by the federal Truth-in-Lending Act and because all lenders apply the same rules in calculating the APR, borrowers are able to effectively compare the costs of different mortgage loans.

An indicator used to compare interest rates which takes into account all costs involved in setting up the loan. All lenders that comply with the Consumer Credit Act must inform the borrower of the APR. Application Fee The fee a lender normally charges to process a loan application.

is the true cost of a loan, including all financing charges and fees. The APR is expressed as an annual percentage rate, as required by the Truth In Lending Act.

On some mortgages the APR is higher than the actual mortgage rate.

The base interest rate of a loan plus all additional service charges and costs. The APR takes into account the amount financed, the finance charge, and the amounts and timing of the payments. Under the Truth in Lending Law, the APR must be disclosed and labeled.

The actual cost of a loan over a year, or the actual yield on a savings account over one year.

Under the truth-in-lending law, the APR is used to disclose the total cost of a loan to a borrower and is converted to the so-called effective interest rate.

The cost of credit expressed as a percentage of the net amount borrowed calculated as required by Regulation Z implementing the Truth-in-Lending Act.

The cost of credit, expressed as a simple annual interest. Abbreviated APR. (See "interest rate")

The interest rate reflected as a yearly rate, taking into account points and other fees

The APR is a flat average, which is used for ease of comparing the terms on various loans. Some of the closing costs will be factored into the APR. The actual monthly payments, however, will be based on the existing interest rate, and not the APR.

A percentage calculation reflecting total annual cost of a loan (interest plus all fees).

There are two interest rates applicable to your loan: (i) your Actual Interest Rate and (ii) your Annual Percentage Rate or APR. Your Actual Rate is the annual interest rate of your loan (sometimes referred to as the "note rate"), and is the rate used to calculate your monthly payments. The Annual Percentage Rate (referred to as the "APR") takes into consideration both your interest and any additional costs you may pay such as prepaid interest, private mortgage insurance, closing fees, points, etc. Your APR represents the total cost of credit on a yearly basis after all charges are taken into consideration. Another way of looking at APR is this. If you applied your monthly payment to only the amount financed (your loan amount minus all fees), the interest rate you would be paying is the your APR. Hence, if your APR is significantly higher than your note rate, then your fees are probably excessively high.

The total interest amount charged on loans, H.P and mortgages.

In order to allow buyers to compare loans in a fair way, federal law requires lenders to disclose the APR along with their rates. APR is the interest rate plus points and fees added together and amortized over the entire term of the loan. Points and fees usually increase the nominal rate by about .25 point.

The cost of credit expressed as the yearly percentage required to be disclosed by the lender under the Federal "Truth in Lending Act". It includes up-front costs (pre-paids) and finance charges associated with obtaining the loan. Therefore, it is usually a higher rate than the interest rate on the note.

is an interest rate expressed as an annual percentage rate. The APR is used to calculate the amount of interest on outstanding credit card balances. A low APR means low interest (finance) charges. For example, if a card's APR is 0%, there is no interest charged on the outstanding balance - you pay no interest to the credit card issuer on the borrowed money, you are borrowing money interest-free. On the other hand, if a card's APR is 18%, you pay 18% interest on the outstanding credit card balance. This means that if you owe $1,000 you pay $180 in interest charges per year.

The actual cost of credit stated as a percentage. Includes the up-front costs of obtaining the loan, such as any points paid. The APR is most often higher than the note rate of the loan because of the disclosure of these costs, but does not include credit report, title insurance, or appraisal. This rate is required to be disclosed under the Federal Truth In Lending Act, Regulation Z.

It is the interest rate charged on the loan. It is the yearly rate of interest, expressed as a percentage of the loan. It is the real cost of the loan and includes interest, service charges, points, fee etc.

The actual yearly cost of a loan, including interest and charges.

The interest of a mortgage based on a yearly rate.

Is the calculated interest rate over credited amount for the period of one year. APR is the percent representation of the annual interest rate.

The annual cost of a mortgage. APR is the base interest rate plus points, fees, and other loan costs.

The actual cost of interest on a motorcycle loan stated on a yearly basis.

This aims to estimate the real cost of borrowing so that you can compare different products on the market.

The rate of annual interest and finance charges associated with a loan.

(APR) – The annual percentage rate equals the total interest rate paid over the life of the loan combined with the pre-paid finance charges and presented in percentage form. As a result of the pre-paid finance charges, the APR is invariable higher than the rate of interest that the NOTE indicates.

A calculation of the cost of credit, including the interest rate and finance charges such as discount points, closing costs, and mortgage insurance premiums.

Often referd as the APR, it shows the cost of a loan as a yearly interest rate.

(APR) expressed as a percentage, includes interest and other finance charges to indicate the total cost of the credit.

The total rate of interest projected over the life of a loan.

The number used to compare the overall cost of a mortgage expressed as an annual interest rate. The calculation used to determine the APR includes the note rate of the loan and costs the borrower must pay to get the loan. The APR is usually higher than the actual note rate of the loan. Lenders must disclose the APR to the borrower. It is often used to compare similar loans.

A calculated rate of interest for a loan over its projected life (the term of the loan). This rate includes the interest, all points (which are considered prepaid interest), mortgage insurance, and other charges associated with making the loan that the lender collects from the borrower. The APR is calculated by a standard formula that all lenders should use.

The cost of a loan, expressed as a yearly rate, which reflects not only interest charges, but also all other charges imposed directly or indirectly by the lender as a cost of obtaining the loan (for example, points and mortgage insurance premiums).

Interest that a loan will cost you each year.

the total cost of a loan including all fees and interest.

The true interest rate. The total cost or finance charge for a loan per year, expressed as a percentage.

The APR for your home loan is an annual calculation that includes the interest rate quoted by your mortgage company plus additional home loan costs such as origination fees and points. The important thing to keep in mind about your loan's APR is that it will be higher than advertised interest rates because of these additional factors.

A mortgage's yearly interest rate. The APR represents the actual annyual cost of credit over the life of the loan including interest, service charges, points, loan fees and other items.

This percentage is determined by dividing the principal amount of a loan by all finance charges that include interest, points, and any other finance charges.

The cost of credit as a yearly figure. It is figured on the total of all financing charges paid by the buyer over the life of the loan including, but not limited to, interest charges and settlement costs.

The interest rate is the amount of interest you will pay for borrowing money to purchase your home. The APR is higher than the interest rate because it reflects the actual cost of a mortgage as a yearly rate. Be careful when you compare the APRs of one lender to another's. Some lenders include discount points in their APR and leave out their fees, others include discount points and other fees.

A statutory method of calculating the total cost of a loan expressed as a percentage paid yearly. It makes it easier to compare rates between mortgage providers.

The APR is the rate of the total charge for credit expressed as the law requires, enabling you to compare the rates of credit card issuers. The total charge for credit includes interest, any annual fee payable and the handling fee in the case of a cash advance.

The total yearly cost of a mortgage or a loan, including interest, points, and other fees.

the actual finance charge for a loan, including points and fees, in addition to the stated interest rate.

This is the interest rate associated with your auto loan. Typically calculated as a yearly rate.

The actual yearly cost of credit stated to the nearest one-fourth of one percent. Any lender subject to the federal Truth-in-Lending Act must fully disclose the APR to the borrower.

A calculation that allows you to compare the actual financial cost of your mortgage. It standardizes your rate to include all elements of your finance charge including interest, points, origination fees or any other “costs” that are considered a finance charge. This figure is disclosed as part of a truth-in-lending statement that is required by the Federal Truth-In-Lending Act. This rate allows you to compare loan programs. Generally the lower the APR the better, provided that you do not prepay your loan early.

A measure of the total cost of credit (interest as well as other recurring charges) expressed as a yearly percentage rate. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans.

The yearly percentage rate charged when a balance is held on a credit card. This rate is applied each month that an outstanding balance is present.

The total credit cost on a yearly basis, expressed as a percentage. Required by the Federal Truth in Lending Act, Regulation Z, it includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Does not include title insurance, appraisal, or credit report.

The cost of credit at a yearly rate. Applicant - A person applying for credit privileges, employment or some other benefit.

The total cost of a mortgage stated as a yearly rate; includes the base interest rate, loan origination fee (a.k.a. points), commitment fees, prepaid interest, and credit costs that may be paid by the borrower.

The annual percentage rate refers to the total cost of the loan, expressed as a yearly rate.

The actual interest charged when all finance charges and up-front fees are included. Federal Truth-in-Lending laws require all creditors to state the cost of their credit in terms of both the finance charge and the APR.

The annual percentage rate (APR) is the value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage.

The real cost that you pay to borrow, stated as a yearly percentage of the loan amount. This is sometimes called your effective borrowing cost. For auto and mortgage loans, closing costs and discount points are added to calculate APR. For example, if you pay $500 in closing costs to obtain a $10,000 loan, the APR will be higher than the interest rate since you are effectively borrowing $9,500 but will owe $10,000. The Truth-in-Lending Act requires the lender to disclose the APR to you. For credit cards, the annual fee is often not included in the APR calculation. As a result, an APR of a credit card is often its simple interest rate.

A term used in the Federal Truth-In-Lending Act which expresses as a percentage the annual cost of a mortgage including the regular interest payments to be made with each payment on the mortgage, as well as certain closing costs paid in association with the mortgage such as an underwriting fee, tax service contract, mortgage insurance premium, etc.

The cost of your loan, expressed as an annual percentage. Lenders are required by law to provide you with the APR calculation. The lender must calculate all the financing charges paid by the borrower, including the interest paid on the loan, the loan origination fee and mortgage insurance you may be required to pay. back to the top

Total yearly cost of a mortgage stated as a percentage of the loan amount which includes the base interest rate, loan origination fee (points), and primary mortgage insurance (PMI).

A term defined in section 106 of the federal Truth in Lending Act, which expresses on an annualized basis the charges imposed on the borrower to obtain a loan (defined in the Act as “finance charges”), including interest, discount and other costs association with the loan.

A figure that indicates the true total cost of the loan as a yearly percentage rate. The APR is higher than your interest rate because other costs (such as borrower-paid origination fees, mortgage insurance, processing and loan fees) are included.

The relationship of the total finance charges associated with a loan. This must be disclosed to borrowers by lenders under the Truth-in-Lending Act.

A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. This is the true rate of actual interest which includes interest and any other loan fees.

stands for Annual Percentage Rate. This refers to the interest rate that reflects the actual cost of a mortgage as a yearly rate. Because APR includes points and other costs associated with the mortgage, it's usually higher than the advertised simple interest rate. The APR more accurately reflects what you'll be paying and allows you to compare different mortgages based on actual costs.

The effective rate of interest for a loan per year, disclosure of which is required by the TRUTH IN LENDING LAW. EXAMPLE: Borrower gets a loan for $50,000.00 at 10% interest plus 2 discount points, payable over 30 years. Because of the discount points, $49,000.00 has been effectively borrowed but $50,000.00 must be repaid with 10% interest of $50,000.00. Considering the effective amount borrowed, the annual percentage rate is 10.25%.

The cost of a loan expressed as a percentage rate. It includes both the interest rate on the loan and many of the costs in getting the loan. APRs are the best way to compare loans.

The total interest rate of a mortgage, including the original loan interest as well as any upfront interest paid in securing the loan. The APR will be different from the mortgage rate quoted because of inclusion of these items.

It is the yearly rate of interest charged on the loan which is a percentage of the loan. Considered the real cost of the loan it should be considered before deciding on the loan.

A required Truth in Lending Act disclosure for consumer loans. It is a calculation of the cost of credit as a yearly rate and shown as a percentage. It is often higher than the interest rate because it incorporates prepaid finance charges that are not interest.

This is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It is not the note rate on your loan. The following instruction offers you a guideline that, while occasionally incorrect, generally holds true: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual note rate on your loan.

A calculation of the finance charges. The U.S. Government requires that all retail installments contracts disclose the APR, which is the common denominator of interest rate types. This is the rate, usually applied monthly, which could be charged on the outstanding declining balance, and still permit the loan to be paid off in the same term and with the same monthly payment. In short, it is the relative cost of credit expressed in percentage terms and may be expressed on the contract to the nearest 1/4%.

The cost of credit on a yearly basis expressed as a percentage. The APR is distinguished from the "named" or "nominal" rate which is the note rate.

Cost of a mortgage stated as a yearly rate - includes items such as interest, loan origination fee (points), commitment fees, and other credit costs.

A stated interest rate that reflects all the financing costs of a mortgage; the APR includes points, origination fees and other finance charges in addition to the interest on the mortgage, and includes them all in a yearly interest rate. As a result, the APR is usually higher than the interest rate alone. It also provides a benchmark for comparing different types of mortgages based on the annual cost for each loan

Not to be confused with interest rate, an APR refers to the cost of credit over the course of a year. It's represented as a percentage, and is calculated using the amount financed, any charges, and the term of the car loan.

A term used in the Truth-in-Lending Act to represent the percentage relationship of the total finance charge to the amount of the loan. The APR reflects the cost of your mortgage loan as a yearly rate. It will be higher than the interest rate stated on the note because it includes, in addition to the interest rate, loan discount points, fees and mortgage insurance.

A figure that calculates the full cost of a loan including interest rate and all other fees associated with securing a loan.

The measure of the cost of credit stated as a yearly rate; includes such items as the stated interest rate, plus certain charges.

The amount of interest, (expressed in percentage points), that when calculated equals the total finance charges over a year. · See Also · Interest

A rate of interest over a period of one year that includes fees and costs paid to acquire the loan. By law, lenders are required to disclose an APR. In mortgages, APR is the interest rate of a mortgage including other costs such as the interest, mortgage insurance, and certain closing costs.

The interest rate on the loan. This can either change (variable interest rates) or remain stable (fixed interest rates) throughout term of the loan.

The relative cost of credit as determined in accordance with Regulation Z of the Board of Governors of the Federal Reserve System for implementing the Federal Truth in Lending Act.

the true amount of interest paid on a debt. The government requires that lenders disclose the APR to borrowers.

The total yearly cost of a mortgage stated as a percentage of the loan amount; includes the base interest rate, borrower-paid mortgage insurance, if necessary and loan origination fee or points.

This is the total finance charge shown as a percentage of the amount financed.

The cost of your credit expressed as a yearly rate.

A type of interest rate used by all lenders that enables you to compare rates.

a stated rate that reflects the entire cost of your mortgage, including interest, points, origination fees, etc.

Yearly rate of fees applied as interest in a loan.

The actual cost of credit to the borrower, including interest and certain other changes, expressed as a yearly rate and calculated over the life of the loan. A guide to compare the cost of loans.

The actual cost of a loan stated as a yearly rate; including such items as interest payments, principal payments, loan insurance, processing, credit reports, appraisals and loan origination fee (points).

This is a number which reflects the “true” annual cost of borrowing, expressed as a percentage. The APR is likely greater than the interest rate specified in a loan because it takes into account other costs of borrowing, such as mortgage insurance.

This rate takes into account all the costs, interest charges and arrangement fees and allows you to compare credit facilities on a like for like basis.

The annual percentage rate is a rate that reflects the total cost of your mortgage loan. The APR reflects factors including the interest rate on your mortgage loan, the term of the loan, and the other applicable costs of financing such as points, fees and certain closing costs.

The total annual amount it costs to use credit.

A measure of interest rate that expresses the cost of a mortgage as a yearly rate on the loan balance. The APR assumes that the loan is held for its full term. For an adjustable-rate loan, the APR assumes the loan's index doesn't change from its initial value.

An expression of the effective interest rate that will be paid on a loan, taking into account one-time fees and standardizing the way this rate is expressed. The APR is likely to differ from the "note rate" or "headline rate" advertised by the lender. The aim of using APR is to calculate a total cost of borrowing which allows easy comparison between loans and lenders.

A term used in the Truth in Lending Act to represent the cost of credit expressed as a yearly rate. The APR reflects the interest rate plus points and other credit-related costs.

The amount a loan costs, paid yearly and expressed as a rate of costs over the loan itself.

The rate of interest paid to the lender from the borrower every year.

The annual percentage rate is a measure of the cost of credit on a yearly basis. APR takes into account interest, points, origination fees, and mortgage insurance, so it will be slightly higher than the interest rate on the loan.

The cost of a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, and loan origination fee (points).

The yearly percentage rate the credit card issuer charges on the ongoing balance. This rate is applied to your outstanding balance each month.

APR is a measurement of the full cost of a loan including interest and loan fees expressed as a yearly percentage rate. Because all lenders apply the same rules in calculating the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans.

The cost of credit on a yearly basis expressed as a percentage. The APR of a loan is the total finance charge, including interest and fees.

The cost credit as an annual rate of a mortgage. It must be calculated by using a formula set by federal law and disclosed to the borrower to aid in comparing different credit plans. All finance charges are included in this calculation, and an APR is always higher than the simple interest rate of the mortgage.

a term used to represent the percentage relationship of the total finance charge to the amount of the loan note interest rate. This reflects the cost of credit expressed as a yearly rate, taking into account total finance charges.

The relationship of the total Finance Charge to the total amount to be finance as required under the Federal Truth-in-Lending Law.

The total cost of attaining a loan, inclusive of finance charges and fees, expressed as an annual rate.

Often referred as the "APR", this shows how much credit will cost you on a yearly basis.

This is not the note rate applied for, but rather is a government mandated formula that shows the cost of the loan in a yearly rate by using the note rate plus certain other upfront costs

The interest rate that reflects the true cost of a mortgage on a yearly basis, expressed as a percentage. The government requires lenders to disclose the APR to borrowers--it is usually a higher figure than the stated loan rate, as it takes into account points and other charges.

The effective interest rate a loan would have if one accounted for costs associated with securing the loan, such as closing costs and points.

A percentage rate that is charged on a yearly basis when a cardholder maintains a balance on his/her credit card. The APR is applied each month that a balance remains on the card. This rate may be fixed or variable.

The cost of credit, expressed as a yearly rate including interest, mortgage insurance, and loan origination fees. This allows the buyer to compare loans, however APR should not be confused with the actual note rate.

This is the true cost of your borrowing, in percentage terms. It is usually higher than the â€˜headline rateâ€(tm) you will see advertised with a product because it takes into account the likely total cost of your borrowing over the full term of the mortgage, including any charges.

This is the one that raises the blood pressures of all borrowers. Although the Realtor and the closing attorney attempt to thwart the seizure by prefacing the document before the page is turned, borrowers attest to the fact that the speed of sound travels more slowly that the speed of light. For example, a loan with a fixed rate of interest at 5.5 percent could have an APR of 6.876 percent if there is prepaid interest and a discount point or two. No one ever gets this one. Accept it.

The periodic rate, expressed as an annual percentage, used to compute the finance charge on an outstanding balance. To calculate the amount owed in interest each month divide the APR by 12. For example, if the APR is 24% the monthly rate is 24/12 = 2%. For daily periodic rate, divide the APR by the number of days in a year. Daily Periodic Rate = 24/365 = 0.066% For detailed explanation, visit Understand Your Credit Card by Visa

This is a measure of the cost of credit, expressed as a yearly rate. The APR takes into account the amount financed, the loan interest rate, and the finance charges (fees and points) and the amounts and timing of the payments.

A standard calculation used to show the total cost of a mortgage or other loan. Includes costs such as interest payments, valuation fees, legal fees and administration fees which aren’t included in the basic interest rate. The APR is designed to reflect the true cost of credit. It’s a good way of comparing the cost of different loans on a 'like-for like' basis and because mortgage and loan rates vary, so will the APR.

The interest rate which reflects the cost of a mortgage as a yearly rate. This rate is usually higher than the stated loan rate for the mortgage because it includes points and other charges.

Annual interest rate calculated to reflect all of the financing costs of a mortgage. Includes note rate of loan, loan points, origination fees, and other financing charges.

The effective interest rate when all finance charges and up-front fees are included. The APR on a loan can vary among lenders because of differences in up-front fees, even if the interest rates are the same. The term of the loan and repayment terms can also affect the APR.

Earlier loan providers would put a low rate of interest on the car loan. On the other hand, they would include several fees and charges. To give a more actual data of interest for comparison, the use of APR is made.

The percentage rate that providers charge users for carrying a balance on a loan, which is measured as a yearly rate. Some credit card providers offer 0 APR credit cards.

The interest rate that reflects the actual cost of credit on a yearly basis expressed as a percentage.

Total yearly cost of credit

The interest rate reflecting the total yearly cost of the interest on a loan, expressed as a percentage rate. Under the federal Truth in Lending Act, it must be calculated in a standard way.

The true cost of a mortgage, expressed as a yearly % rate. This rate is likely to be higher than the stated note rate, because it takes into account points and other credit costs.

APR is the interest rate charged on the loan. It is the cost of credit on a yearly basis expressed as a percentage.

This shows you the interest rate paid over the course of one year. It's a useful way to compare which mortgage offers are the best when you're shopping around.

The APR is a measure of what a loan will cost. It takes into account the rate, fees, repayment length of the loan and the timing of all payments. The APR will increase if the LIBOR index increases.

A measure of the cost of credit expressed as a yearly rate, that relates the amount and timing of value received by the consumer to the amount and timing of payments made. This rate includes specified fees and costs paid up front to acquire the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Lenders are required by federal law to disclose the APR. The rate is used to compare various loans.

Is a interest rate reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account point and other credit cost. The APR allows home buyers to compare different types of mortgages based on the annual cost for each loan.

A way of expressing the charges a borrower pays to get a mortgage loan in terms of an annual interest rate. APR includes the loan's interest rate, fees and points.

The actual interest rate, taking into account points and other finance charges, for the projected life of a mortgage. Disclosure of APR is required by the Truth-in-Lending Law and allows borrowers to compare the actual costs of different mortgage loans.

The true rate of interest, stated as a yearly percentage, for a loan over its projected life.

The total yearly cost of a mortgage, on an annual rate, expressed as a percentage. It usually includes a combination of the interest rate, a loan origination fee known as points, and certain other fees paid to a lender to acquire a mortgage. The APR is the most meaningful measure for comparing the cost of mortgage loans offered by different lenders.

an interest rate that states the true cost of obtaining credit for the duration of the loan.

The total finance charges associated with a loan or credit card stated as a yearly rate. Often the most useful means of directly comparing one loan or credit card to another.

The cost of credit on a yearly basis, expressed as a percentage. Required to be disclosed by the lender under the Federal Truth in Lending Act, Regulation Z. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate on the mortgage note. Does not include title insurance, appraisal, and credit report costs.

Interest associated with a loan. It can change or remain the same during the year and term of the loan.

The Annual Percentage Rate ("APR") is a measure of the cost of credit, expressed as a yearly rate. The APR takes into account the amount financed, the finance charge, and the amounts and timing of the payments. Under the Truth in Lending Law, the APR must be disclosed and labeled.

The rate of interest to be paid on a loan over its projected life; sometimes referred to as the "true" rate of interest. The APR is the annual cost of a loan, including interest, loan fees, and other costs.

The APR is the interest rate as a yearly rate. This is essentially the cost of your credit. Mortgage Tip - APR: When comparing programs, make sure you compare the APR. This is the true cost of your credit.

This is the actual cost of borrowing of your loan, taking into account all associated fees and charges. The APR is the best way for most people to compare loans from different lenders.

The cost of a mortgage expressed as a yearly rate. This percentage takes into account interest, points and certain origination and other fees. It will usually be higher than the simple interest rate on the loan. The APR is listed on the Truth in Lending Disclosure, which details the finance charges imposed on the borrower to obtain a loan on an annualized basis.

The yearly cost of the loan to the borrower. It reflects all finance charges, including interest (if applicable), guarantee fee (if applicable) and origination fee (if applicable).

This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. It works sort of like this, but not exactly, so only use this as a guideline: deduct the closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of your actual loan amount. You will come up with a number close to the APR. Because you are using the same payment on a smaller amount, the APR is always higher than the actual not rate on your loan.

The cost of credit as a yearly rate or interest rate reflecting the first-year rate including certain points and credit costs. The actual interest rate the borrower pays when all the costs of obtaining credit are included.

The cost of credit expressed as a yearly rate. This rate may differ from the interest rate on your loan because it includes all interest (including points), mortgage insurance and other fees associated with completing your loan.

A calculated, gross loan cost disclosure -- shows the borrower's "effective" total cost of obtaining credit when all the upfront costs and the loan interest rate are considered together. APR is not the loan rate and does not affect the amount of the monthly payments. It is a calculated disclosure only, required under Federal lending laws.

A credit arrangement term that applies to the relative cost of credit stated as an annual percentage, i.e. the annual cost of credit.

The real number to watch. It's the rate that reflects your mortgage as a yearly rate plus points and other credit cost-- the true cost of your loan. Since different lenders charge different rates for various fees, the APR lets you more easily compare one loan to another.

The total finance charges, loan fees and interest expressed as a portion of the loan amount.

Annual cost of credit over the life of a loan, including interest, service charges, points, loan fees, mortgage insurance, and other items.

A percentage of the amount of the home loan that represents the total annual cost of the loan, including finance charges.

The total cost or finance charge for a loan per year, expressed as a percentage of the loan amount. It is the sum of the interest and any other fees, such as discount points, compared to the amount of the loan. The lender is required by the Truth-In-Lending Act to disclose the APR using a procedure prescribed by the federal government.

A figure which attempts to reflect the total cost of a loan,expressed as a yearly rate. Because the APR takes the total cost ofcredit into account, it can never be lower, and is almost higher thanthe stated note rate or advertised rate. Within reason, the APR allowsyou to compare different types of mortgages based on the total cost.

The APR is a measure of the cost of your loan expressed as a yearly percentage rate, such as 10% or 11%.

The APR is a measure of the cost of credit, expressed as a nominal, yearly rate. It relates the amount and timing of value received by the consumer to the amount and timing of payments made.

The total amount of finance charges expressed as a true percentage of the declining unpaid balance.

The cost of credit expressed as an annual rate.

Interest rate charged on total amount borrowed.

The periodic interest rate multiplied by the number of periods (monthly or quarterly) in a year. For example, a 2.5% quarterly return has an APR of 10% for the year.

The actual cost of borrowing money, expressed in the form of an annual interest rate. It may be higher than the note rate because it represents full disclosure of the interest rate, loan origination fees, loan discount points, and other credit costs paid to the lender.

The effective interest rate of a loan after including the costs incurred in obtaining the loan, such as, interest, points and fees.

The total cost of credit on a yearly basis expressed as a percentage. It takes into account the total cost of the loan including finance charges (origination fee, points, prepaid interest, etc. This calculation is disclosed as part of the disclosure statement which is required by the Federal Truth-in-Lending Act. The statement is required on all consumer loans and is required to be disclosed within three working days of application for residential owner-occupied mortgage loans pursuant to the Real Estate Settlement Procedures Act (RESPA).

Expressed as a yearly interest rate, the APR is essentially a measure of the cost of credit. This rate may be subject to change, based on the terms of the card and whether the rate is fixed or variable. Also, you may be charged different APRs for different transactions. For example, cash advances are usually charged at a higher rate with no grace period.

A yearly interest rate that includes interest, points, and other loan fees. The APR is the appropriate number to use when comparing loan interest rates.

The yearly interesr rate on the auto loan.

The value created by a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. At least in theory. Confused? Use this as a guideline: deduct closing costs from your loan amount, then using your actual loan payment, calculate what the interest rate would be on this amount instead of the actual loan amount. You will come up with a number close to the APR.

This one can be a little confusing because you would think that it should be the same as your interest rate. The difference is that it takes additional costs into consideration such as mortgage insurance, most closing costs, discount points and loan origination fees. The Truth-In-Lending Law requires disclosure of APR.

The cost of credit at a yearly rate. Knowing the APR allows you to effectively compare loans, even when they are structured differently.

The finance charges for a loan, including points and other loan fees, that are in addition to interest on the loan. Back to the Top

A measure of the cost of credit expressed as a yearly rate. Many credit card plans charge different APRs for credit used in different ways--for example, one APR for purchases, another for cash advances, and still another for balance transfers. Some plans may increase the APR if a payment is late.

The total charge for the loan including fees and interest expressed as a percentage. This is for the term of the mortgage.

(APR) - the rate of interest (in terms of a percent, such as 8.75%) being charged for a loan over a year's time. The APR rate includes interest, transaction fees, and service fees.

This is the actual rate of interest your loan would be if you included all of the other associated costs such as closing costs and points.

A rate calculated using a standard formula. Shows the total cost of a loan - interest, points, mortgage insurance, and other fees associated with the loan.

The cost of credit as expressed as a yearly (annual) rate. The APR takes into account the interest rate, points and some loan origination fees paid by the borrower.

Sometimes called the Annual Interest Rate. The yearly interest rate or percentage that you pay on an outstanding balance in the form of interest.

The base interest rate of a loan plus all additional service charges and costs. APR is considered the loan's true rate of interest, and is shown on the Truth in Lending Statement.

The annual cost of a mortgage, including interest, loan fees and other costs, stated as a percentage of the loan amount. A rate designed to allow for the comparison of one type of loan to another. The annual cost of borrowing under a given form of loan (includes in the calculation compounded interest, cost of borrowing etc.). Required to be disclosed by the lender under the American Truth in Lending Act, Regulation Z.

Rate that reflects annual cost of a loan. It includes loan interest rate, PMI (Private Mortgage Insurance) points and some fees.

The cost of credit including interest, loan fees and discount points stated as an annual percentage.

The total cost of your loan, expressed as a percentage rate of interest, which includes not only the loan's interest rate, but factors in all the costs associated with making that loan, including closing costs and fees. The costs are then amortized over the life of the loan.

The cost of credit that the consumer pays, expressed as a simple annual percentage.

A percentage figure, calculated by using a standard formula that takes into account interest rates and associated costs over the term of a mortgage, used to compare the mortgage rates charged by different lenders.

Cost of borrowing money, expressed as an annual percentage.

A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders follow the same rules when calculating the APR, it provides consumers with a good basis for comparing the cost of loans, including mortgages.

The annual total cost of financing, including interest rate, loan fees and other costs. Stated as a percentage of the loan amount.

A more precise description of the cost of money, which reflects not only the actual interest rate but the cost of certain expenses charged as part of the process of obtaining the loan. The actual items calculated into the APR are determined by the federal government.

The finance charge calculated over one (1) year, taking into consideration all costs (includes origination fees, lender fees and certain closing costs) of the loan as required by the Truth in Lending Act.

A figure expressed on the Truth in Lending Statement provided by the lender/broker that represents finance charges associated with the proposed transaction as an annualized percent of the amount financed. This is not the note rate.

This is the interest rate that is of use for the year. Closing costs are not taken into account, so it is usually a higher rate.

Often confused with interest rate, an APR supplies the cost of credit over the course of a year. It is supplied as a percentage taking into consideration the amount finance, any charges, and the term of the loan.

The APR is a rate calculated using a generic formula applicable to all Lenders, which includes all the costs associated with a mortgage. This allows for easy comparisons to be made between the different mortgage products offered by each Lender.

The cost of obtaining a mortgage stated as a yearly rate; includes such items as interest, mortgage insurance, points and origination fees.

A measure of the cost of credit expressed as a yearly percentage rate. This is a federally required formula, designed to help the owner compare the cost of credit.

The total cost of your loan expressed as a percentage rate of interest. APR includes the loanâ€™s interest rate and certain closing costs and fees associated with the loan which are amortized over the life of the loan.

The total yearly cost of a mortgage stated as a percentage of the loan amount; includes such items as the base interest rate, primary mortgage insurance and loan origination fee.

The yearly interest percentage of a loan after all fees and charges have been factored in.

The interest rate of a loan expressed as a yearly rate. The APR takes into account the interest rate, mortgage insurance, and loan origination fees (points). The A.P.R. is disclosed as a requirement of federal truth in lending statutes.

An interest rate reflecting the cost of a loan as a yearly rate. This rate is likely to be higher than the stated note rate on the mortgage, as it takes into account points and other credit costs. The APR allows borrowers to compare different types of mortgages based on the annual cost for each loan.

The total amount charged for the loan including fees and interest expressed as a percentage.

This is the annual interest rate you are assessed for borrowing money on a credit card. If you pay the entire purchase balance on your monthly bill on time each month, then you will typically pay nothing (a one-month interest-free loan). Otherwise this rate is applied to your outstanding balance each month.

Is the interest rate reflecting the cost of a mortgage as a yearly rate. This measurement of rates is likely to be a little higher than the stated mortgage note rate or advertised rate on the mortgage. It takes into account points and other mortgage related origination costs. You can find the A.P.R. on the mortgage disclosure document.

To make it easier for consumers to compare mortgage loan interest rates the federal government developed a standard format called an "Annual Percentage Rate" to allow consumers to comparison shop for an effective interest rate. . Some of the costs that you pay at closing are factored into the APR for ease of comparison. Your actual monthly payments are based on the periodic interest rate, NOT on the APR.

The actual cost of borrowing money expressed in the form of an annual rate to make it easy for one to compare costs of borrowing. (includes but not limited to points, interest, discount points) (see Truth-in lending Act)

The cost of a mortgage stated as a yearly rate including such items as interest, mortgage, and loan origination fees or points.

The annual cost of borrowing money expressed as a percentage of the loan amount, which includes loan related charges and fees. Reflects the real cost of borrowing money and can be used to compare similar loans by various lenders.

The cost of credit on a yearly (annual) basis.

The effective rate of interest for a loan. The APR reflects all the costs of financing - including points, origination fees, and other finance charges - and is usually higher than the interest rate alone.

The cost of credit shown as a yearly rate. The annual percentage rate is usually not the same as the interest rate. The APR will be higher than the interest rate stated in the note due to the fact that it includes the interest rate, loan discount points, fees and mortgage insurance.

A measure of the cost of credit expressed as a nominal yearly rate. Lenders are required by law to disclose the APR, and the rate is used as a benchmark for various loans so that even simple interest and compound interest loans may be compared.

A term used in the Truth in Lending Act to represent the full cost of a loan including interest and loan fees.

The total cost of your mortgage loan expressed as an annual interest rate. This includes the base interest rate, mortgage insurance, origination fees, and some other related fees.

The interest rate paid when all of the costs of obtaining credit (such as closing costs) are included.

A figure that represents the cost of the loan over the term of the loan expressed as a percentage. The APR is disclosed the Truth In Lending disclosure.

(APR): The APR is intended to reflect the various costs associated with a loan in addition to interest. The APR represents fees, costs and interest as a cumulative rate as required by the federal Truth in Lending Act.

The cost of credit as a percentage of the amount financed. Lenders must disclose their costs in these terms according to the Truth-in-Lending Act.

Periodic rate times number of periods in a year.

The interest rate used to calculate how much in finance charges will accumulate if the balance isn't paid in full by the due date.

The actual rate of interest paid, the APR represents the interest percentage of the total finance charge to the amount of the loan. The APR is disclosed to conform to federal truth-in-lending statutes.

An interest rate that reflects the cost of a mortgage as a yearly rate. This rate takes into account any points and fees and is based on the loan going to it's full-term.

A measure of the cost of credit expressed as a yearly rate that relates the amount and timing of value received by the consumer to the amount and timing of payments made. The APR includes the quoted interest rate plus certain service charges and other finance charges associated with the loans.

The total cost of a mortgage stated as a yearly rate. It includes the interest, mortgage insurance, and loan origination fee (points).

The yearly interest percentage of a loan, as expressed by the total finance charge actually paid (interest, loan fees, points). The A.P.R. is disclosed as a requirement of federal truth in lending statutes.

Total yearly cost of a mortgage, expressed by the actual rate of interest paid. APR includes the base interest rate, points, and other add-on loan costs. Because it includes other costs, the APR is always higher than the mortgage's interest rate.

Earnest Money NIV Loan (No Income Verification)

There are two interest rates applied to your loan: the Actual Interest Rate and the Annual Percentage Rate. The Actual Rate is the annual interest rate you pay on your loan (sometimes referred to as the "note rate"), and is the rate used to calculate your monthly payments. The amount of interest you pay, as determined by your Actual Rate, is only one of the costs associated with your loan; there may be others. The Annual Percentage Rate (APR) includes both your interest and any additional costs or prepaid finance charges you might pay such as prepaid interest, private mortgage insurance, closing fees, points, etc. Your APR represents the total cost of credit on a yearly basis after all charges are taken into consideration. It will usually be slightly higher than your Actual Rate because it includes these additional items and assumes you will keep the loan to maturity.

Under the Truth In Lending Act, the relationship between a loan's total finance charge and the total amount financed, expressed as an annual percentage. The total finance charge includes interest, any discount points paid by the borrower, the loan origination fee, and mortgage insurance costs

The actual annual cost of borrowing. The APR represents the relationship of the total finance charge (interest, loan fees, points) to the amount of the loan.

This rate takes into account all the costs, interest charges, arrangement fees etc. Theoretically it allows you to compare mortgages on a like for like basis. However, you need to be careful as different lenders calculate it in different ways.

calculated by using a standard formula, the APR shows the cost of a loan; expressed as a yearly interest rate, it includes the interest, points, mortgage insurance, and other fees associated with the loan.

A percentage rate that reflects the amount of interest earned or charged.

the federal government developed a standard format called an "Annual Percentage Rate" or APR to provide an effective interest rate for comparison shopping purposes. Some of the costs that you pay at closing are factored into the APR. Your actual monthly payments are based on the interest rate, not the APR.

The total finance charge (including interest, points, and other finance charges) expressed as a percentage of the amount financed.

The APR is a measurement of the cost of credit and enables people to compare the cost of credit cards from different sources. It includes interest along with other charges consumers have to pay. The APR is a measure of the cost of credit, expressed as a yearly rate. The annual percent rate of interest on your credit card tells you how much interest you will pay on outstanding balances on your credit card. The APR is a legal requirement. All credit card issuers must make it clear what the APR is on each of their cards.

The effective yearly cost of interest rate paid on a loan, also called APR. APR includes interest, and the origination fee (points) if any, expressed as a percentage. Lenders are required by law to disclose the APR.

A calculation expressing the total cost of credit as a yearly percentage. It includes up-front costs (i.e. prepaid interest) and any other finance charges associated with obtaining the loan. For this reason, the APR is usually higher than the interest rate on the mortgage note. The APR should not be confused with the mortgage's note rate, which is used to calculate the principal and interest payment.

APR is the yearly rate of interest including all miscellaneous costs. Must be disclosed by lenders as per the law.

An interest rate reflecting the cost of a mortgage as a yearly rate. Because it takes into account points and other credit costs, the APR is likely to be higher than the mortgage rate. It is a basis of comparison for mortgage loan costs.

The cost of your loan expressed as a yearly rate. For mortgages, it includes interest, points, origination fees, attorney fees, mortgage insurance or any other charge that is expressed as a fee.

A standardized measure of the actual credit cost of a loan expressed as a percentage rate on a annual basis. Unlike the interest rate which dictates the rate of interest charged on the unpaid balance for each payment, the APR takes additional finance costs, such as loan "points" and closing costs into account, and always shows a true rate that is higher than the interest rate. The APR is calculated according to rules established as part of the federal Truth-in-Lending Act.

Sometimes called the “true” rate of interest, it includes interest and certain loan fees and discount points.

The cost of a borrower's credit as a yearly rate. Defined by the federal Truth in Lending Act, it includes finance charges as well as the contractual interest rate.

A calculation that expresses the total cost of a mortgage loan as a yearly rate. The Annual Percentage Rate (APR) includes both your interest and any additional costs or prepaid finance charges you might pay such as prepaid interest, private mortgage insurance, closing fees, points and certain fees paid at origination. It generally results in a rate slightly higher than the stated interest rate on the loan.

The interest charged on purchases over one year, expressed as a percentage of the amount borrowed. It includes the interest to be paid on the amount borrowed and other compulsory non-interest costs (for example annual fees). The APR does not include any avoidable charges such as late payment fees. Companies that advertise loans or credit cards are required to state what the APR rate is. This enables borrowers to compare rates and to see the true rate of interest repayment they would incur over a full year.

The interest rate on a loan for a one-year period.

A rate that reflects the actual cost of a loan, incorporating the loan interest rate, private mortgage insurance, points and fees.

The cost of obtaining credit, expressed as a yearly rate, taking into account the interest rate, points and certain loan fees.

(APR) the annual cost of a loan to the borrower. the APR includes the base interest rate of the loan, points (if any) and other fees. Lenders must disclose the APR on a loan by law. The APR is used to compare loans.

Charges imposed on the borrower to obtain a mortgage, expressed on an annualized basis as an interest rate. It includes the interest rate, loan fees and points.

The APR is a measure of the cost of credit, expressed as a yearly interest rate. Usually the lower the APR, the better for you. Be sure to check the fine print to see if your offer has a time limit. Your APR could be much higher after the initial limited offer.

Includes quoted interest rate on the loan plus all additional service and finance charges associated with the loan. Includes all costs of financing; those paid at the time of closing and those paid over the term of the loan. The APR is usually slightly higher than the note rate.

The effective interest rate on a loan, including all fees and other charges.

the rate which includes not only interest, but also origination fees and discount points in relation to the loan amount. This must be provided by the lender at loan application.

A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other costs over the life of the loan. Lenders generally follow the same rules to ensure the accuracy of the annual percentage rate, which provides Members with an even comparison on the cost of loans, including mortgage plans.

A standard format developed by the federal government to provide an effective interest rate for comparison shopping of loans. Some closing costs are factored into the APR. Actual monthly payments are based on the periodic interest rate, not the APR.

A simple loan rate, such as 6.5%, familiar to anyone who has taken out a loan or mortgaged a home. It represents the percentage of the loan amount that you will pay annually for the privilege of borrowing the money.

The cost of credit as a yearly rate. The percentage results from an equation considering the total amount financed, the finance charges, and the term of the loan. Usually not the same as the interest rate.

( APR) The Annual Percentage Rate (APR) is a yearly rate of interest that includes all of the fees and expenses paid to acquire the loan. A term used in the Truth-in-Lending Act to represent the percentage relationship of the total finance charge to the amount of the loan.

the total cost of credit expressed as a yearly rate. Includes interest, loan discount fee (points) and other credit costs.

an interest rate designed to show you the total annual cost of getting credit. APR is calculated in a standard way so that you can compare the cost of using one card with another.

The actual cost of borrowing money, expressed in the form of an annual rate to make it easier to compare the cost of borrowing money among several lenders or sellers on credit. The APR includes all the financing costs of a mortgage, including points, origination fees and other finance charges and the mortgage interest.

The actual interest rate a borrower will pay each year on the unpaid balance of a vehicle loan.

A percentage calculation that reflects the total cost of a loan (interest plus all fees) on an annual basis.

It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage. APR measures the true interest cost of borrowing by including any fees or prepaid interest involved in obtaining a loan.

The cost of credit expressed as a yearly rate. The percentage results from an equation factoring in the total amount financed, the finance charges, and the term of the loan. Will typically differ from the i nterest rate.

The cost of credit expressed as a yearly rate. It reflects the simple interest rate plus any finance charges such as origination fees or points. It helps you better understand the true cost of the loan and make informed decisions.

The APR is a measure of the cost of credit, expressed as a yearly rate. It also must be disclosed before you become obligated on the account and on your account statements.

APR is the cost of credit as a yearly rate and expressed as a percentage. The percentage is computed in accordance with the total amount financed, the finance charges, and the term of the loan. APR is inclusive of interest rate.

The cost of carrying a balance on a loan expressed as an annual percentage. To calculate the amount owed in interest each month divide the APR by 12. For example, if the APR is 18% the monthly rate is 1.5%.

The cost of the loan expressed as a yearly rate on the balance of the loan.

An interest rate expressed as a percentage per annum. The APR on a loan account is applied to the unpaid balance of the account to calculate the interest payable on the loan.

a type of interest rate shown as a yearly rate; its calculation incorporates principal, interest, points, insurance, and any other related fees.

The cost of credit on a yearly basis, expressed as a percentage. Required to be disclosed by the lender. Includes up-front costs paid to obtain the loan, and is, therefore, usually a higher amount than the interest rate stipulated in the mortgage note. Does not include title insurance, appraisal and credit report. Collateral Collateral refers to an asset that guarantees the repayment of a loan. The borrower risks losing the asset if the loan is not repaid according to the terms of the loan contract.

The effective interest rate when all finance charges and up-front fees are included. The APR on a loan can vary among lenders because of differences in up-front fees, interest charges and the length of the loan term. Federal Truth-in-Lending laws require that lenders state the cost of their credit in terms of both the finance charge (i.e., interest rate) and the APR.

A figure that states the total yearly cost of a mortgage as expressed by the actual rate of interest paid. The APR includes the base interest rate, points, and any other add-on loan fees and costs. As a result the APR is invariably higher for the rate of interest that the lender quotes for the mortgage but gives a more accurate picture of the likely cost of the loan. Keep in mind, however, that most mortgages are not held for their full 15 or 30 year terms, so the effective annual percentage rate is higher than the quoted APR because the points and loan fees are spread out over fewer years.

This is not the note rate on your loan. It is a value created according to a government formula intended to reflect the true annual cost of borrowing, expressed as a percentage, which includes the interest rate and other costs associated with the loan.

The total yearly cost of the interest on a loan, expressed as a percentage rate. The Federal Truth in Lending Act mandates a standard calculation method to allow a consumer to make "apples to apples" comparisons of lending rates.

This is the cost of credit on a yearly basis.

A standardized method of calculating the cost of a mortgage, stated as a yearly rate which includes such items as interest, mortgage insurance, and certain points or credit costs.

A term defined in section 106 of the Federal Truth in Lending Act (PL 90-321; 15 USC 1606), which reflects on an annualized basis the charges imposed on the borrower to obtain a loan (defined in the Act as "finance charges"), including interest, discounts and other costs.

The yearly interest rate that reflects the total cost of the mortgage. The APR is likely to be higher than the quoted interest rate because it includes acquisition fees, points, insurance, and other credit and closing costs. Lenders are required by law to make the APR of the mortgage known and it is therefore a good way for borrowers to compare loan variations based on yearly costs.

The ratio of the finance charge to the average amount of credit in use during the life of the contract, expressed as a percentage rate per year.

The total finance charge (interest, loan fees, points) expressed as a percentage of the loan amount.

The yearly interest percentage of a loan, expressed by the actual rate of interest paid. The APR will factor in all interest costs, including prepaid interest in the form of points. The APR is disclosed as a requirement of federal truth in lending statutes.

The total cost of a mortgage stated as a yearly rate. It is typically higher than the note rate because it includes the base interest rate plus specific closing costs.

The term used to describe a special interest rate calculation (see Interest), determined mathematically -- takes into account both the interest rate of the mortgage (the note rate) and certain fees charged by the lender in conjunction with obtaining the mortgage, and expressing the resulting value as a percent. The APR expression will typically be higher than the rate identified in the mortgage.

Is an interest rate percentage reflecting the cost of a mortgage as a yearly rate. This rate is likely to be higher than the stated note rate or advertised rate on the mortgage, because it takes into account discount points, prepaid interest, mortgage insurance together with other costs of obtaining credit. The APR allows homebuyers to compare different types of mortgages based on the annual cost of each loan.

Finance charge over a full year, expressed as a percentage of all costs of the loan as required by the Truth-in-Lending Act.

The annual cost to a borrower of consumer credit that has been calculated according to certain consumer laws.

A rate which reflects the loan's total finance charges, including interest, points, PMI (if applicable), and other fees.

Also known as APR; it is the relative cost of credit, expressed as a percentage. It's disclosure is required under the Truth-In-Lending Law or Regulation Z.

The effective rate of interest on a loan per year including interest at the note rate and the total finance charges. Regulation Z, the Truth-in-Lending law, requires APR disclosure.

The yearly sum of charges including interest, points, insurance and fees calculated as a percentage.

The cost of your credit as a yearly rate. This includes interest and certain additional costs and fees associated with the loan. It is often referred to as the APR.

The total cost of credit on a yearly basis expressed as a percentage. It takes into account the total cost of the loan including origination fee, points, prepaid interest, etc. The APR is typically higher than the note rate.

A representation of the true cost of a loan expressed as a yearly rate, taking into account interest, points, and other finance charges. Disclosure of the APR is required by the federal Truth-in-Lending Law and allows borrowers to compare the costs of different mortgage loans.

The cost of your credit as a yearly interest rate (not the same as the note rate).

Different than the rate on a loan. The APR reflects the true cost of borrowing as a percentage.

the cost of loan expressed as yearly interest rate. The APR includes the interest rate and all fees paid to obtain the loan such as points and closing costs.

The APR is the total yearly cost of the interest on a loan, expressed as a percentage rate.

The interest rate of a loan that includes interest, loan discount points, loan origination fees, and the loan brokers commission. see also APR. A number that indicates the true total cost of a mort gage, including the interest rate, points, and any fees.

The Consumer Credit Act 1974 has been designed to make the customer aware of the time cost of borrowing. A "rule of thumb" was therefore developed to protect the customer, allowing them to fairly compare one guide deal with another. This not only includes the pure interest element but all other borrowing costs and is expressed in terms of an Annual Percentage Rate (APR). Regulations stipulate how the APR should be shown in advertisements and quotations.

The advertised rate of interest per annum.

Also known as the interest rate. The yearly rate or percentage that one pays on credit balances in the form of interest.

The effective interest rate paid on a loan, expressed as an annual rate. APR measures the true cost of borrowing by including any fees or prepaid interest involved in obtaining a loan. For instance, if a borrower pays $500 in closing costs to obtain a $10,000 loan, the APR is higher than the simple interest rate because the borrower is repaying a $10,000 loan but only receiving net proceeds of $9,500. The federal Truth-in-Lending Act requires lenders to disclose the APR.

This describes the rate on your loan. You have to be careful in examining whether the bank is telling you stated APR or real APR. The difference is following: even though banks tell you that an annual rate 5% for example, they accrue interest daily. That means that every day there is a little bit more principal to accumulate percentage on. So in reality your rate is approximately 5.4%.

How much a loan costs annually. The APR includes the interest rate, points, broker fees and certain other credit charges a borrower is required to pay.

The cost of credit expressed as a yearly rate. The annual percentage rate is often not the same as the interest rate. It is a percentage that results from an equation considering the amount financed, the finance charges, and the term of the loan.

Where interest on loans is expressed as other than a yearly rate

One of the most frequently used pieces of jargon used in relation to a credit card. APR refers to the full annual cost of your credit card (it is also used in relation to mortgages, overdrafts and personal loans). The APR includes all the extra charges you have to pay, such as a higher interest rate after an introductory rate, and is meant to help you compare one financial product with another. In relation to a credit card, the apr tells you the annual cost of carrying a balance on any particular card.

The cost of your loan expressed as a yearly rate. For mortgages, it includes interest, points, origination fees, and any mortgage insurance required by the lender.

The cost of credit expressed as a percentage and as a yearly rate is termed as annual percentage rate, or APR in short. The percentage will be calculated keeping into consideration the total amount financed, the finance charges, and the term of the loan. APR is a very important tool for comparison of auto loans.

The amount of interest you will be expected to pay, should you borrow on your credit card. APRs show the cost of borrowing on a standard basis so you can compare the APR of one credit card provider with another and compare the cost of credit cards with other types of borrowing.

The effective rate taking into account compounding and other fees. The nominal rate of interest for a specified period (usually one year).

The effective rate of interest on a loan assuming a one-year time period. This is the interest rate that is disclosed to borrowers for comparison with credit offered by other lenders. The calculation is the same as Internal Rate of Return (IRR).

A measure of the cost of credit, expressed as a yearly rate. It includes interest as well as other charges. Because all lenders follow the same rules to ensure the accuracy of the annual percentage rate, it provides consumers with a good basis for comparing the cost of loans, including mortgage plans.

A measure of how much interest credit will cost you, expressed as an annual percentage.

To make it easier for consumers to compare mortgage loan interest rates, the federal government developed a standard format called an "Annual Percentage Rate" or APR to provide an effective interest rate for comparison shopping purposes. Some of the costs that you pay at closing are factored into the APR for ease of comparison.

Total financing cost of credit expressed as a yearly rate.

The interest rate used by all mortgage lenders that enables you to compare rates.

The APR of loans is calculated in a standardized way that takes fees into account, making it easier to compare loans. Unfortunately, in mortgages, the APR is of limited value, since by law lenders can omit some fees, rendering meaningful comparisons difficult.

The rate charged for one year of credit.

The cost of credit over a full year. The law requires lenders to express financing terms of the APR.

The actual finance charge for a loan, including points, fees and the actual interest rate.

The cost of credit, expressed as a yearly rate. APR is generally not the same as the contract interest rate.

Annual Percentage Rate (APR) is the total finance charges â€“ including interest, loan fees, points and other charges â€“ expressed as a percentage of the total amount of the loan. These costs of borrowing are reflected in the APR to provide a true cost of borrowing to the consumer. The APR, due to the inclusion of these costs, is often higher than the contracted â€œNoteâ€ rate if the costs are financed.

The cost of your credit as a yearly rate. It takes into account interest, points, loan origination fee, etc. It is a good basis for comparing the cost of various loan programs, since all lenders are required to use the same guidelines in determining APR.

Also referred to as APR or interest rate, it is the cost of your credit expressed as an amortized percentage per year.

Also known as effective annual rate, is used to put investments with varying interest compounding periods (daily, monthly, semiannually) on a common basis. It is computed as follows: APR = (1 + r/m) - 1.0 where = the stated, nominal, or quoted rate, and = the number of compounding periods per year.

The yearly percentage rate of the finance charge. It is not unusual for credit card companies to change an interest rate especially if tied to other interest rates such as a prime rate or Treasury Bill rate. This is referred to as a variable rate. If an interest rate is locked in at a specific rate, it is referred to as a fixed-rate.

The cost of credit on a yearly basis, expressed as a percentage. Required to be disclosed by the lender under the federal "Truth in Lending Act", otherwise known as Regulation Z. This includes up-front costs (pre-paids) to obtain the loan, and therefore, is usually a higher rate than the interest rate (note rate) in the mortgage Fee's not included are: title insurance, appraisal, and credit report.

The yearly interest percentage of a loan, as expressed by the actual rate of interest paid. Example: 6% add-on interest would be much more that 6% simple interest, even though both would say 6%. The APR is disclosed as a requirement of federal truth in lending status.

The rate of interest charged annually on credit, expressed as a percentage.

a measurement of the full cost of a loan. It includes interest on the principal plus loan fees expressed as a yearly percentage rate. All lenders must apply the same rules in calculating the APR, so looking at this number is a quick, easy and fair method to compare lenders (mortgagees) and the costs of their loan(s).

A measurement used to compare different loans offered by competing lenders, which takes into account both the interest rate and closing fees. Unlike an interest rate, an APR gives you a bigger picture when shopping for the best deal on a loan. An APR lets you see the total cost of a mortgage, including closing fees and lender points over the life of a loan - not just the interest due. Even though lenders are required by law to show a loan's APR, they don't all use the same fees in their calculation, skewing the comparison. So always check to make sure that the APRs you are comparing include similar fees.

Required to be furnished to the borrower by Federal law, the APR has no bearing upon the homebuyer's monthly payment and is typically somewhat higher than the stated mortgage rate.

The interest rate borrowers pay on a loan. Most of a loan's upfront fees are factored into the APR. Calculating the APR on a credit card can be a tricky business, however. Grace periods and late fees can have a dramatic affect on your APR.

The interest to be paid expressed in annual terms.

Annual interest rate expressed as a percentage of the loan balance .

The total cost of your loan expressed as a percentage of interest rate. The federal Truth-in-Lending requires it to be quoted.

A yearly, expressed rate that gives the total cost of the loan. This is very useful for comparing different loan offers.

Congress' inept attempt to give consumers the ability to differentiate between loan programs offered by various lenders by making lenders disclose the "true" cost of borrowing. It is an imperfect solution to the problem. See the Chapter "Everything you wanted to know about APR but were afraid to ask.

This is the rate of interest which represents the true cost of a loan (including mortgages) as it takes into account not only the basic rate of interest charged on the loan but also all the other related fees and charges over the course of the loan term.

The total amount of the finance charge--including interest, points and all loan fees (ie; escrow, processing, etc.) - calculated as a percentage of the borrowed amount and expressed as a yearly rate.

The real annual cost of a loan, such as a credit card bill, which includes fees, charges and interest. This can be higher than the interest-only rate.

The cost of credit for one year expressed as a percentage.

To make it easier for consumers to compare mortgage loan interest rates, the federal government developed a standard format called an "Annual Percentage Rate" or APR to provide a measure of the cost of credit for comparison shopping purposes.

Source: Federal Reserve Bank of Cleveland Definition: The cost of credit on a yearly basis expressed as a percentage. Source: Federal Reserve Bank of Minneapolis Definition: The cost of credit on a yearly basis expressed as a percentage.

The cost of a mortgage expressed as a yearly rate. This percentage takes into account interest, points, origination fees, and mortgage insurance, so it will be slightly higher than the interest rate on the loan.

This states the total annual cost of a mortgage expressed by the actual rate of interest paid.

A yearly interest rate that includes fees and costs paid to obtain the loan. Lenders are required by law to disclose this interest rate. The rate is calculated in a standard way, taking the average compound interest rate over the loan term, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.

This is the cost to you on a yearly basis expressed as a percentage, added to a monthly payment.

A rate which represents the relationship of the total finance charge (interest, loan fees, points) to the amount of the loan.

This is the total cost of the loan in terms of a yearly percentage of the amount you borrow. It takes into account interest payments, repayments of capital and all other charges for arranging the loan. It is based on projections for the payments applicable during the term of a mortgage expressed as a rate of interest. It allows you to compare like with like when weighing up offers from different lenders.

Developed to provide you with a clearer description of how much your loan cots, the APR is the true cost of your credit stated at an annual, or yearly rate. The APR also takes into account any costs associated with your loan other than the interest rate. These may include origination fees, loan discount points, and private mortgage insurance premiums.

The overall cost of a mortgage, including interest, mortgage insurance, and loan origination fee (points), stated as a yearly percentage, thus allowing buyers to compare different types of mortgages based on the associated annual finance charges; the APR

The measure of how much a loan will cost in interest per year. It takes into account all charges, such as valuation fees on a mortgage or any annual charges on a credit card, so it is the best measure of the total cost of a loan.

The interest rate that includes the mortgage rate along with fees, insurance and other costs involved in obtaining the loan.

The cost of a mortgage expressed as a yearly rate. This percentage takes into account interest, points, origination fees, and mortgage insurance, and other fees. The APR is usually higher than the interest rate on the loan.

The true rate of paying interest on a loan.

The rate at which interest is charged over a yearly period in respect of money that is owed. Interest is usually calculated on a daily basis and may be charged monthly, quarterly or annually.

All finance charges, interest, points, and other fees computed over the term of the loan. APR must be disclosed to the borrower as a result of the Federal Government's "Truth In Lending" Laws.

The effective cost of a home loan stated as a yearly rate taking into account such items as interest, mortgage insurance, most closing costs, discount points and loan origination fees. Disclosure of APR is required by the Truth-In-Lending Law.

The cost of credit or a loan expressed as a simple annual percentage. The Federal Truth In Lending Act requires all consumer credit agreements and loans to disclose the APR in large, bold type. On a mortgage, the APR is usually higher than the stated interest rate, since it includes points and other charges.

A yearly rate of interest. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans.

is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay.

The nominal interest rate for one year.

(APR) The cost of credit expressed as a yearly rate, taking into account interest, points, and other finance charges. Disclosure of the APR is required by the federal Truth-in-Lending Act and allows borrowers to compare the costs of different mortgage loans. annual fees A yearly membership or maintenance fee for having the home equity line of credit available. It is charged whether or not the line is used.

total cost of the loan, including interest and other finance charges, expressed as a yearly rate.

In finance, the rate of interest paid for a loan after compounding is considered. Syn: effective interest rate.

The annual interest charge on an obligation, including the resulting of all aggregate compounding.

A method to make differing mortgage rates easily comparable by calculating the total cost of a loan by including all costs, interest charges and arrangement fees.

The rate a borrower actually pays, including interest, points and loan origination fees when expressed as a percentage rate per year. On an adjustable rate mortgage, assumption is made that the loan's index remains the same as its initial value.

Also called the effective percentage rate, this is the total yearly cost of a mortgage, which is stated as a percentage of the loan amount. The APR includes the base interest rate, primary mortgage insurance and loan origination fee.

The TOTAL interest rate of a mortgage, including the stated loan interest as well as any upfront interest paid in securing the loan. The APR will invariably differ from the mortgage rate quoted due to the inclusion of these items.

Cost of credit calculated as a yearly rate. You will be notified of the APR when you apply for any credit card. Also, the APR will always be listed on your monthly statements.

Annual Percentage Rate (APR) is an expression of the effective interest rate that will be paid on a loan, taking into account one-time fees and standardizing the way the rate is expressed. In other words the APR is the total cost of credit to the consumer expressed as an annual percentage of the amount of credit granted. APR is intended to make it easier to compare lenders and loan options.

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Light Industrial/Assembly

(See YIELD)

Appraisal Arm's Length Transaction

Appraisal Closing

**Keywords:**report

Annual Report

See definition here.