Terminology

APR is the acronym for several terms, but for the purpose of this website APR is the acronym for Annual Percentage Rate. Which in simplest terms is the annual rate of interest; the total interest to be paid in a year divided by the balance due. There is almost always an APR associated with a bank loan, credit card or mortgage. Some APR’s are considered a variable APR and some are considered fixed. There is also nominal APR and effective APR.  I’ll blog about the differences in a future blog post.