APR vs Note Rate - What's the Difference?
Do you know what APR is?
APR is an easy(-ish) way for consumers to be able to compare different loan options.
Just because the "rate" you are receiving from one lender is lower than another, doesn't always mean that is the best deal. The closer an APR is to the "Note Rate" the lower the costs are that are associated that rate.
If you had two loans to choose from:
1. 3.5 rate and 3.8 APR
2. 3.25 rate and 4.25 APR
While the 2nd option may seem the most enticing, it is clearly associated with higher costs.
Which one is better? Even that is tough to answer because it depends on you; your goals and your plans.
Shoot me an email, text or call. I would be glad to take a look, even if it's not a deal we are working on together.
