Protect yourself - APR versus interest rate

Many consumers don't understand the important difference between an APR and the interest rate and it can cost you thousands of dollars over the life of a loan. The APR stands for "Annual Percentage Rate" and it includes the fees incurred on the loan as well as the interest paid on the loan. The interest rate is the actual interest paid on the principal, not including any fees. The APR is almost always higher than the interest rate so that is what you need to understand. As much as federal law tries to protect the consumer by mandating that lenders disclose the fees in the APR, many consumers still don't understand the APR and focus on the interest rate alone, which can cost thousands of dollars out of your pocket if you are not careful. For more real estate information, please contact Christi Teachenor at christisrealestate@outlook.com.