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What is the difference between interest rate and APR? |
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An Interest rate is the monthly cost you pay on the unpaid
balance of your home Loan. An Annual Percentage Rate (APR) includes both your
Interest Rate and any additional cost or prepaid finance charges such as the
Origination fee, Points, the initial private Mortgage Insurance, Underwriting
and processing fees. (Your actual fees may not include all of the items above.)
The APR is a universal measurement that will assist you in comparing the cost
of mortgage loans.
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