stephenandrew
Recycles dryer sheets
- Joined
- May 5, 2007
- Messages
- 148
Hi--
This may be a dumb question, so be gentle. I recently went to the PenFed website to look at mortgage rates. They show a 5 year arm (fixed for 5 years) with an interest rate of 5.5% w/ an APR of 4.507%. I always thought that the APR was supposed to include not only interest, but other fees to give you a true idea of the real interest rate or cost on the loan. If I am right, how can the APR be lower than the interest rate listed? Am I missing something?
Thanks!
This may be a dumb question, so be gentle. I recently went to the PenFed website to look at mortgage rates. They show a 5 year arm (fixed for 5 years) with an interest rate of 5.5% w/ an APR of 4.507%. I always thought that the APR was supposed to include not only interest, but other fees to give you a true idea of the real interest rate or cost on the loan. If I am right, how can the APR be lower than the interest rate listed? Am I missing something?
Thanks!