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What is Apr & how is it calculated?

APR is the cost of borrowing money expressed as a yearly percentage. This figure is calculated based on the loan’s interest rate and any fees that are part of its terms. The APR may be fixed or variable, depending on the type of loan.

What is interest rate & APR?

Both interest rate and APR are important to consider when evaluating loan offers. Interest rate and APR are relevant to several loan types, including mortgage loans, home equity loans and personal loans. APR isn’t as relevant for credit card accounts and home equity lines of credit (HELOCs). What Is Interest Rate?

What does Apr mean on a loan?

APR represents the price you pay for a loan. It typically includes interest rates and any fees, too. APR can sometimes be the same as a loan’s interest rate, like in the case of most credit cards. APR may be fixed or variable, meaning the rate may stay the same or it might change with market factors.

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