Best Answer: the apr shows all the fees added to the loan and the yield spread if your rate is that much higher id say your broker added to the rate to get a yield spread! (more money form bank that you wont see) they generally say thats just all the fees added not to worry about it. its total bull puc
annual percentage rate (apr) Annual percentage rate is the total cost of borrowing on your card for a year, including both interest and fees. The higher the APR. Cards with an EMV chip are more.
Why is the APR higher than the interest rate? The APR figures in not just your interest rate, but also some fees associated with your loan over its lifetime. At Prosper, this means the closing fee charged when you first borrow the money. This closing fee is paid out of the loan proceeds when the loan originates.
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The Annual Percentage Rate (or APR) is a calculated rate that is different from the actual mortgage note rate. The Federal Truth in lending law requires mortgage lenders to disclose the APR when they advertise or disclose a rate of interest to a borrower.
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An APR is expressed as a percentage and is usually higher than an interest rate, as it factors in other charges related to getting a mortgage. APRs were created to make it easier for consumers to compare loans with different rates and costs.
– Why is my APR so much higher than the interest rate Chase is giving me 3.5% on my home loan to close next month. Yet when I look at their Truth In Lending Disclosures, the APR is 4.454%. Wells Fargo is giving me (I’m comparing loans before I pay and do the final app) 3.625%, but their APR is 4.
APR (aka Annualised Percentage Rate) is a type of interest rate that is calculated over a set period of months (normally twelve). Ok, so far that seems fairly easy to understand. Now let’s look at how APR is related to nominal and effective interest rates: Nominal APR is the simple interest rate you pay over one year.
APR Calculator for Adjustable Rate Mortgages The annual percentage rate (APR) is defined as an annualized cost of credit. When it comes to mortgage financing, the APR is the actual rate of interest paid by the borrower including upfront costs such as points, closing costs, and prepaid interest.