APR
APR expresses the total annual cost of borrowing including interest, fees, and charges as a single percentage, enabling accurate comparison between different mortgage products.
| APR Components | Inclusions |
| Base interest rate | Nominal rate charged |
| Processing fees | One-time charges amortized |
| Insurance premiums | Mandatory coverage costs |
| Valuation fees | Property assessment charges |
| Registration fees | DLD and legal costs |
| APR vs Interest Rate | Example |
| Stated interest rate | 5% |
| Fees amortized | 0.4% annual equivalent |
| Total APR | 5.4% |
| Difference | Represents |
| Comparison Application | Use |
| Loan A | 5% rate, 1% fees = 5.3% APR |
| Loan B | 5.2% rate, 0.25% fees = 5.35% APR |
| Better choice | Loan A despite higher rate |
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