What is APR?

You know those interest and fees that you pay on a credit card, mortgage or other kind of loan? That’s called the APR, also known as Annual Percentage Rate.

The APR from each loan vehicle will represent different things. For instance, the APR from a credit card represents the interest rate you’re paying, but doesn’t include the annual fee. On the other hand, a mortgage APR represents the interest charges and additional fees included by the lender. Check the APR carefully so you’ll always know exactly what you’ll be paying.