ST Alpha - "For loans, what's the difference between 5.75% interest rate and 6.88% APR?" (Reading a Post)

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For loans, what's the difference between 5.75% interest rate and 6.88% APR?

Posted by Beryllium (aka grayman) Mar 15 '20, 19:32

I'm curious both practically and mathematically.

Responses:

somewhere around 17% difference in the amount of interest paid over the life of the loan -- nm - zeitgeist Mar 15, 19:56
APR is calculated after reducing the principal by points and certain fees. - znufrii Mar 15, 19:37 3
- *pulls out the whiteboard* -- nm - Katie Porter Mar 15, 19:40 2
  - If I'm doing the math correctly, it works out to about 16.5% in points and fees upfront? -- (edited) - znufrii Mar 15, 19:42 1
    - maybe not quite that high, because I forgot to account for compounding. -- (edited) - znufrii Mar 15, 20:10

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