If you haven't already seen it, you will soon; your Annual Percentage Rate, or APR. This number is one of the most confusing numbers on all the documents your.

Let’s look at an example of interest rates and APR: Mortgage Rate X: 4.50%, 4.838% APR Mortgage Rate Y: 4.75%, 4.836% APR . The advertised mortgage rate "X" is 4.50%, but requires that two mortgage points be paid – it also has $2,000 in additional closing costs, which pushes the APR to 4.838%.

A mortgage could tout 6.6% APR, yet you may never be charged 6.6%; instead you get a 4.5% fixed rate for two years followed by 6.75% variable for the remainder of the term. The 6.6% is the average cost if you were in the unlikely situation of keeping that mortgage for the full 25.

An APR might be fixed or variable. A fixed apr generally remains the same throughout the life of the loan. However, in the case of credit cards, a fixed APR can change if the card issuer notifies you 45 days in advance of the rate increase. A variable APR can change without notice and is based on another interest rate, like the prime rate.

When it comes to credit cards, one of the main differences between variable and fixed APR boils down to one word: notification. The Annual Percentage Rate, a statement of the interest rate as a yearly rate, is actually subject to change whether it’s variable or fixed.It’s just that with a fixed APR, the lender has to send out a notice first.

Fixed rates variable rates; description: Your rate remains the same throughout the specified term. Your rate may fluctuate throughout the loan term. main benefit: Your repayments remain the same no matter what’s happening in the market. Your starting rate is usually lower than that of fixed rate loans and could possibly remain lower.

Fixed vs variable mortgage in 2018: Which is better? home equity loans come with fixed interest rates, fixed monthly payments, and a fixed repayment timeline. Since home equity loans let you borrow against the equity in your home, you can qualify for a.

An APR can be either fixed or variable. A fixed APR is boring and predictable: The rate won’t change but will hold steady during the life of your loan. But don’t yawn, because the APR’s reliability is.

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