Understanding the Difference Between Interest Rates and Annual Percentage Rates
When you're looking at buying a home at the Lake of the Ozarks , you know you'll need to start shopping for a mortgage loan . But if you’re like most home buyers, you might not know about all the things you should be considering when shopping for a loan. One of those important factors is knowing that the interest rate and the APR measure two different costs associated with your home loan, and this could affect your overall cost. Many consumers make the assumption that they're one in the same. However, understanding the difference between an interest rate and an annual percentage rate (APR) could save you thousands of dollars on your mortgage. Here's the Difference The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. An annual percentage rate (APR) reflects the mortgage interest rate plus other charges. There are many costs associated...