Frequently Asked Questions

What is the difference between an Interest Rate and an APR?

The note rate is used to calculate your interest payment each month. The APR (Annual Percentage Rate) is a calculation based on standardized federal regulations. In addition to the interest rate, it factors in points and certain APR fees (escrow fee & notary fee, to name a few) in an attempt to better show the total cost of the financing over the scheduled life of the loan. The APR is designed to help borrowers fairly compare different lenders and loan options. Please note that the loan amount will influence the APR calculation, with higher loan amounts reporting lower APR calculations.

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