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Have
you ever wondered what APR is? |
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The
Annual Percentage Rate (APR) is the relative cost of
credit as determined in accordance with Regulation Z
of the Board of Governors of the Federal Reserve System
for implementing the federal Truth-in-Lending Act, according
to Charles O. Stapleton III, Thomas Moran and Martha
R. Williams, authors of "Real Estate Principles,"
3rd Ed., Dearborn Financial Publishing, Chicago; 1994.
The APR is the actual yearly interest rate paid by the
borrower, figuring in the points charged to initiate
the loan and other costs. The APR discloses the real
cost of borrowing by adding on the points and by factoring
in the assumption that the points will be paid off incrementally
over the term of the loan. The APR is usually about
0.5 percent higher than the note rate. |
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