finance: DON'T BE FOOLED BY APR NUMBER
- 02/21/08 08:51 AM
Source: bankrate.com The term "APR" is supposed to give consumers an easy way to compare loan offers, but if you use it as your only method of comparison you'll probably end up with the wrong loan. Confusing? Let's back up. The Federal Truth in Lending Act requires lenders to disclose the APR - annual percentage rate - on every loan so consumers can have a single number to use in comparing loan offers. APR is computed by including the rate of interest on the amount borrowed plus the amount of the fees you have to pay to get that loan. The higher the … (2 comments)
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