This is the current "market rate," "stated rate, " or "nominal rate." However, this rate does not reflect the true cost of borrowing like the APR %, or annual percentage rate, (APR % calculator) is supposed to.
Required (Do Not Enter in Commas)
Min: 1.0000
Max: 25.0000
Decimals: 4
Example
If current interest rates are 7.3750 (7 3/8s), enter: 7.3750
Remarks
The stated
rate, or nominal
rate, differs from the apr % (annual percentage rate). The stated
rate does not include any costs associated with the loan, the apr % does. It is
important to distinguish between the two. A few facts about APR% should help.
apr %
Lenders quote apr %, or annual percentage rate, (within 3 days) to provide a more truthful
insight of the interest rate you are paying. The APR %, or annual percentage rate,
as calculated under the Truth-and-Lending Act, combines the interest rate (stated
rate or nominal
rate) with other costs of the loan into a single figure. This number is supposed
to reflect the true cost of borrowing and provide a standardized yardstick by which to
compare financing from different sources. Keep in mind that APR %, or annual
percentage rate, may be calculated slightly different at each lender.
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