Explain why the APR does not compare loans for different lengths of time

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asked Jan 28, 2021 215k views

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Dagalpin · Answer 1 · 2021-02-04T02:32:57+0000

Answer:

APR does not tell you how long your rate is locked for. A 15-year loan may have a lower interest rate, but could have a higher APR, since the loan fees are amortized over a shorter period of time. It is not wise to compare a 30-year loan with a 15-year loan using their respective APRs.

Explanation:

Explain why the APR does not compare loans for different lengths of time

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