Plain-English explanation
Use APR (not rate) to compare loans — it normalizes for fees.
Examples
- 7% rate + 2 points + fees = ~7.3% APR.
Common mistakes
- Comparing rate vs APR across lenders.
Related questions
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Financing
Annual Percentage Rate (APR)
True annual cost of borrowing including interest, points, and fees.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
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