What is the difference between rate and apr in mortgages




















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I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Personal Finance Loan Basics. Key Takeaways The interest rate is the cost of borrowing the principal. The APR is almost always higher than the interest rate, including other costs associated with borrowing the money.

The federal Truth in Lending Act requires that every consumer loan agreement list the APR along with the nominal interest rate. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts.

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