- Loan amount
- The total amount for this loan.
- Interest rate
- The interest rate on this loan.
- Loan term
- The number of years over which you will repay this loan. The most common terms are 15 years and 25 years.
- Fees
- Any fees that should be included in the APR calculation. These fees can vary by lender, but at a minimum usually includes prepaid interest.
- Loan payment
- Principal and interest payment (PI).
- Equivalent monthly payment
- The sum of periodic payments.
- Annual percentage rate (APR)
- A standard calculation used by lenders. It is designed to help borrowers compare different loan options. For example, a loan with a lower stated interest rate may be a bad value if its fees are too high. Likewise, a loan with a higher stated rate with very low fees could be an exceptional value. APR calculations incorporate these fees into a single rate. You can then compare loans with different fees, rates or different terms.
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