The yearly cost of borrowing money, expressed as a percentage, including interest and most fees.
APR represents the total annualized cost of a loan or credit line, combining the interest rate with certain fees like origination charges. Because it bundles in fees, APR is usually a more accurate way to compare loan offers than the interest rate alone. Credit card APRs are typically compounded daily or monthly, while mortgage APRs are calculated over the full loan term.
Not to be confused with: Interest rate (which excludes fees) and APY (which reflects compounding on savings, not borrowing cost).
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