APR

Definition

Annual Percentage Rate. The yearly cost of a loan, including interest, insurance, and the origination fee (points), expressed as a percentage. Often applied to mortgages, credit cards, and automobile financing.

For more information, see: Difference Between Interest Rate and APR.

Use APR in a sentence

Our APR was not that bad and I was glad because I thought it would be high and cause us a lot of stress.

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I was nervous the APR for our new mortgage would be too expensive compared to our old rate, but luckily it was not.

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Most borrowers must consider the APR of a loan to in fact gauge the quality of a loan because it determines the actual value of the loan and the overall risk associated with accepting the terms of a loan.

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