Annual percentage rate (APR) and effective APR
7:12
Annual percentage rate (APR) and effective APR
Feb 20, 2011
Khan AcademySal Khan
2.4K views | The APR, or annual percentage rate, is the cost you incur for borrowing money. When it comes to your mortgage, it is calculated using your interest rate, broker fees, closing costs, and all other charges that are required to finance the loan, which is why the APR is usually higher than your interest rate. | FHA.com | Facebook
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2.2K views · 19 reactions | APR vs. APY: Know the difference! Annual Percentage Rate (APR) shows the cost of borrowing, including fees, while Annual Percentage Yield (APY) shows the interest earned on savings, including compounding. Both are crucial for making informed financial decisions. To learn more, visit https://bit.ly/3LA4ydC. | KeyBank | Facebook
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