**Interest Rate**: It is the annual rate which is used to calculate your monthly payments and is the cost to you for your loan.

**APR** - the annual percentage rate is an implied annualized rate and includes all the other costs of taking a loan. The most common cost APR includes is an origination fee (a one-time fee charged by the online lender which is deducted from the loan proceeds).

**Notes**:

The monthly payments are still calculated using only your interest rate, not APR.

Interest is accrued daily on your outstanding principal balance even though you are making monthly payments.

## Comments

0 comments

Please sign in to leave a comment.