{"id":441,"date":"2017-04-13T16:48:19","date_gmt":"2017-04-13T23:48:19","guid":{"rendered":"https:\/\/financer.com\/?page_id=441"},"modified":"2024-01-19T09:12:52","modified_gmt":"2024-01-19T17:12:52","slug":"interest-rate-apr","status":"publish","type":"wiki","link":"https:\/\/financer.com\/loans\/articles\/interest-rate-apr\/","title":{"rendered":"Interest Rate vs. APR"},"content":{"rendered":"\n
For many consumers, it\u2019s a confusing topic. If you understand the difference between an interest rate and an annual percentage rate (APR), it could save you a large amount of money on your next loan<\/a>.<\/p>\n\n\n\n Let’s first look at the interest rate and APR meaning to better understand the difference between APR and interest rate.<\/p>\n\n\n Note<\/strong>: The federal Truth-in-Lending Act<\/a> (TILA) requires that borrowers be provided with written disclosures about important terms of credit before\u00a0<\/strong>they are legally bound to pay the loan.<\/p><\/div>\n\n\n An interest rate refers to the amount of interest due per period and is essentially the percentage of the principal charged by the lender to borrow money from them. Interest rates may be fixed or varied, but they are always expressed as a percentage and can be calculated<\/a> easily.<\/p>\n\n\n\n Simply put, the interest rate does not include<\/strong> the fees charged for the loan.<\/p>\n\n\n\n\t\tInterest Rate<\/h2>\n\n\n\n