Your name saw this post on The ActiveRain Real Estate Network and thought it might be of interest to you. Please see the link below to review the post.

What is an Annual Percentage Rate (APR)?
Financing Information you need to help you buy a home in Reno, Sparks or Fernley. Brought to you by Sandra Mathewson, A RE/MAX premier agent!
The annual percentage rate (APR) is an interest rate that is different from the mortgage note rate. It is commonly used to compare loan programs from different lenders. The Federal Truth in Lending Law requires mortgage companies to disclose the APR when they advertise the rate.
The APR does NOT affect your monthly payments. Your monthly payments are a function of the interest rate and the length of the loan.
The APR is a very confusing number! Even mortgage bankers and brokers admit it is confusing. The APR is designed to measure the "true cost of a loan". It creates a level playing field for the lenders. It prevents lenders from advertising low rates and hiding fees.
If life were easy, all you would have to do is compare APR's from the lenders/brokers you are working with, then pick the easiest one and you would have the right loan. Right? Wrong!
Unfortunately different lenders calculate APR's differently! So a loan with a lower APR is not necessarily a better rate. The best way to compare loans ... more

__________________________________________________
Are you on The Rain? Grow Your Network!