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Loan APR
Explanation:
The Annual Percentage Rate (APR) reflects the total yearly cost of a loan, by taking into account both the interest rate of the loan and any upfront fees charged by the lender. Comparing APRs is the most common way to compare loans.
Our Thoughts:
A loan's APR is calculated under the assumption that the loan is kept for the complete term. If the loan is not kept for the complete term, and you are comparing two loans with the same APR but different fees, the loan with lower fees is better even though the interest rate is higher. As a result, if you are not planning to keep the loan for the complete term it might make more sense to compare loans based on their interest rates and fees instead of using the APR.