2 Answers

APR:  Annual Percentage Rate

Truth in Lending law has forced lenders to give borrowers the APR to express clearly what the borrower is really paying.  Before lenders would charge, say 5% interest, but the cost to borrow is 2%.  This makes the overall borrowing cost go up, usually a lot higher than the 5% initial quote.  A lot of times the borrower doesn't know all the hidden costs.  The federal government forces the lenders to come clean.

It means Annual Percentage Rate. That means  that  your interest rate on your loan or line of credit can go up and down, altho it NEVER goes down. And when buying a house or car, it can even mean your monthy payment might be changed b/c of the APR . If  you buy a house, sometimes you get your choice if you want the payment,and interest  that it would be now, or you want to take a chance on it changing. You should get the price locked in---so it won't go up.