APR stands for Annual Percentage Rate. It is the total cost of borrowing money over a year, including interest and other fees, expressed as a percentage of the amount borrowed.
The APR includes the interest rate on the loan as well as any additional fees, such as origination fees, points, and other charges. The APR is used to compare the cost of different loans, as it provides a standardized way to express the total cost of borrowing over a year.
It is important to note that the APR does not include any fees that may be charged later in the loan, such as late payment fees or prepayment penalties. When comparing loan offers, it’s important to carefully review the terms and conditions to understand all the fees and charges associated with the loan.