APR - Annual Percentage Rate

The definition of mortgage term: Annual Percentage Rate

The amount a loan will cost the borrower over one year expressed in a percentage. The APR takes into account not only the interest rate but points, and flat dollar charges by the lender as well. This does not include payments to third parties. APR's can vary dependent on current interest rates, the borrowers credit history, and the length of the term. It is important to understand that the APR is not the note rate.

 

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