Friday, July 25 2008
Mortgage Terms Glossary Annual Percentage Rate (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. Source: http://www.plazaareaneighbors.com/index.php?pageId=423602&action=mortgage_glossaryComments:
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