APR
APR stands for Annual Percentage Rate.
1 min read Buying a Home
What it means
APR stands for Annual Percentage Rate. It shows the yearly cost of borrowing, including interest and certain fees, making it easier to compare borrowing products.
Example
Two loans have the same interest rate, but one charges higher fees. Its APR is higher because the total borrowing cost is greater.
Why it matters
APR gives a fairer comparison than looking at the interest rate alone.
Lenders must display APR for many borrowing products.
Is the lowest APR always the best option?
Not always. You should also consider fees, flexibility and whether the product meets your needs.