Interest Rate vs. APR: What’s the Difference?

When shopping for a new home loan, it’s easy to feel overwhelmed by the terminology that lenders and realtors use to describe various aspects of lending:ย  PITI, conforming/non-conforming, jumbo, conventional/nonconventional, ARM…ย  I often tell clients, when in doubt, ask your lender to explain anything and everything to you.ย  There are no dumb questions in real estate (and in life).

However, a frequent question I come across is what is the difference between an interest rate and an APR (annual percentage rate)?ย The answer is rather straightforward. Continue reading “Interest Rate vs. APR: What’s the Difference?”

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