The annual cost of a loan, which includes both interest on the loan, and loan-related fees. This is calculated by multipling the interest rate per payment period by the number of the number of such payment periods in a year.
Definition from Nolo’s Plain-English Law Dictionary
A yearly interest rate that includes up-front fees and costs paid to acquire the loan, calculated by taking the average compound interest rate over the term of the loan. Mortgage lenders are required to disclose the APR so that borrowers can more accurately compare the actual cost of different loans with different fees.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:11 pm