Tuesday, September 25, 2007

What is a Annual Percentage Rate?
Answers for Sellers

This is the interest rate of a mortgage, including the stated loan interest as well as any upfront interest paid in securing the loan for one year. The APR will invariably differ from the mortgage rate quoted due to the inclusion of these items. The nominal APR is the simple-interest rate for one year, calculated as rate, for a payment period then multiplied by the number of payment periods in a year. The effective APR is the fee + compound interest rate which is calculated across a year.