landrun
7/25/2010, 12:45 PM
Let's say you're considering getting a loan, for anything, house, vehicle etc...
What is the difference between the interest rate and the APR?
How would you compare two loans with different rates/apr and know which is really the better loan - meaning, with which loan will you pay the least over the life of the loan.
It is my understanding that the APR includes the interest rate plus any extra costs, like closing etc... So, should you really ignore the interest rate and focus on the APR instead?
I've never really understood this and think its time I figured it out. :O
What is the difference between the interest rate and the APR?
How would you compare two loans with different rates/apr and know which is really the better loan - meaning, with which loan will you pay the least over the life of the loan.
It is my understanding that the APR includes the interest rate plus any extra costs, like closing etc... So, should you really ignore the interest rate and focus on the APR instead?
I've never really understood this and think its time I figured it out. :O