APR Explanation?

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Question:

How would you explain to a borrower what APR is? I always got a lot of calls asking why the rate on TIL differs from the one on GFE. My answer to them was "APR is the cost of the loan." How would you elaborate? It seems that they are not always satisfied with my answer.

Answer:

Here is a BOL thread explaining APRs.

First published on BankersOnline.com 4/18/05