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.
| 14 years ago. Rating: 1 | |
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.
| 14 years ago. Rating: 0 | |
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