Posted on: 27th Jun, 2013 12:07 am
I really need to know this why the APR of a loan is greater than that of monthly interest rate that the borrower pays on the loan?
Well, it should be noted here that the APR of a loan is higher because it takes into account the total cost of getting the loan.
The APR provides the actual estimate of the loan's cost and so, you it'll be better for you to compare APRs of different lenders while shopping for mortgages rather than focusing only on their interest rates.