The Annual Percentage Rate (APR) is the cost of borrowing money, expressed as a percentage of the total loan amount. APR includes the interest rate, any points paid to secure the loan, and any other fees that are charged in connection with the loan. The APR is the best way to compare different loans because it takes all of these factors into account and provides a single number that can be used to compare loans.
The APR is important because it allows borrowers to compare different loans on a level playing field. When comparing two loans with different APRs, the loan with the lower APR is typically the better deal. This is because the lower APR means you will pay less in interest and fees over the life of the loan.
When shopping for a loan, be sure to ask about the APR and compare it to other offers. This will help you make sure you are getting the best deal possible.