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Real Estate Term: Annual percentage rate (APR)
Category: Real Estate Finance
Definition: The cost of credit expressed as a yearly rate. For closed-end credit, such as car loans or mortgages, the APR includes the interest rate, points, broker fees, and certain other credit charges that the borrower is required to pay. An APR, or an equivalent rate, is not used in leasing agreements.
Source: A Consumer's Guide to Mortgage Refinancings. The Federal Reserve Board. http://www.federalreserve.gov/pubs/refinancings/glossary.htm