An annual percentage rate (APR) is the annual rate charged for borrowing or earned through an investment, and is expressed as a percentage that represents the actual yearly cost of funds over the term of a loan.
Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR).
The basic definition of an APR: It's an annual percentage rate of interest a credit card holder will be charged on all or a portion of the balance if the full amount isn't paid on or before the due date.
If you have more questions about APR, contact us to speak with a CT real estate attorney.