Understanding Annual Percentage Rate (APR)

Mortgage rates are back at the low levels, making home purchases and refinancing more attractive.

What exactly do the low rates mean, and how can you compare rates? One way to compare loans is to look at the annual percentage rate (APR).

APR is not perfect, but it gives you a starting point to compare costs on different options. See how APR works learn more about it, and how you can calculate it.

Further reading:

• Get the Wrong Loan by Comparing APR