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Answered 2007-07-20 03:48:59

The actual interest rate on a mortgage will always be higher than the annual percentage rate unless the borrower keeps the loan for the full term. Refinancing or selling before the end of the term results in a much higher actual (effective) interest rate. The effective rate on a mortgage can be lower than the annual percentage rate (fixed rate) by paying extra to principal especially early in the mortgage term.

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A higher interest rate is usually the trade-off for what?

Annual Percentage Rate


What is the true annual rate of interest charged?

The true annual rate of charged interest is called the annual percentage yield. It is the interest charged and compounded against.


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A measure of the cost of credit expressed as a yearly interest rate.


How is simple interested calculated differently from coupounded interest?

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What a loan is What interest is And how the annual percentage rate measures the true cost of a loan?

What a loan is: A sum of money lent at interest.What interest is: A charge for a loan, usually a percentage of the amount loaned.And how the annual percentage rate measures the true cost of a loan? Annual percentage rate, commonly referred to as APR, is what creditors charge consumers in order to allow them to make installment payments on rather large purchases, such as What_does_the_term_annual_percentage_rate_mean_for_a_loanand homes. Loan types, credit score, report, and history, can all have effects on what APR you can get for a loan.


What does the acronym APY mean?

Annual Percentage Yield. It means expresses an annual rate of interest taking into account the effect of compounding . It is always greater than or equal to the Annual Percentage Rate [APR]


When pertaining to financial loan what does APR stand for?

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The answer will depend on the interest rate. Multiply the annual interest rate (in percentage terms), by 10000/365


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A way to find interest that uses a 365 day year is?

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Why is the APR considered the most important factor to be mindful in a car loan?

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What is the amount of interest that a 100 deposit would earn after compounding for one year called?

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