APR vs. Rate - what is the difference?
The APR is different from the rate. Every signing agent has a different way of understanding this concept. Here is the best definition we've come across: The APR is the annual percentage relationship between the payments and the amount borrowed, minus the fees. This rate is often used to compare the different loans borrowers have to choose from. The APR is almost always higher than the rate. The rate, on the other hand, is a monthly percentage relationship between the payments and the total amount borrowed, including fees. Please understand this concept well, because many borrowers get upset when they don't understand why their APR is higher than what was quoted to them.