Save Money By Understanding Interest Rate and APR

Interest rates are currently very low. If you’ve been wondering if now is a good time to purchase a house, or refinance, you’ll want to understand the difference between these two items: 

The proportion of a loan that is charged as interest to the borrower.

This is the actual cost of the loan and includes all fees charged by the lender. Including any points, closing costs, and origination fees.

The closer the difference between the interest rate and the APR, means the less money the loan is going to cost you. So be sure to compare those two items to make the best decision.