Annual Percentage Rate

This Issue in United States

Annual Percentage Rate (apr) in relation to Home Equity Lines of Credit

In this context, a definition of Annual Percentage Rate (apr) is provided: The cost of credit, expressed as a yearly rate. For closed-end credit, such as car loans or mortgages, the APR includes the interest rate, points, broker fees, and other credit charges that the borrower is required to pay. An APR, or an equivalent rate, is not used in leasing agreements.

Annual Percentage Rate (APR) in the Context of Mortgage Refinancings

In this context, a definition of Annual Percentage Rate (APR) may be distilled, worded as follows: The cost of credit expressed as a yearly rate. For closed-end credit, such as car loans or mortgages, the APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay. An APR, or an equivalent rate, is not used in leasing agreements.