Loan Rates
How Do I Compare Loan Interest Rates and APR?
First Commerce Credit Union publishes current APRs, terms and payment examples for many of its loan products to help you compare your options.
Key Facts
What Should I Know When Comparing Loan Rates?
Interest Rate and APR Aren’t Always the Same
The interest rate reflects the cost of borrowing the principal. APR incorporates the interest rate plus applicable fees associated with the loan.
Compare Similar Loans
When comparing options, look at loans for similar amounts and terms. A difference in loan length can change both your monthly payment and how much you ultimately pay.
Rates Depend on Several Factors
Rates for certain loans are determined by factors such as your credit, the selected term, and, for some home equity products, the loan-to-value ratio.
What’s the Difference Between Interest Rate and APR?
Both figures tell you something important about the cost of borrowing, but they measure different things. Review the comparison below.
On a small screen, swipe across the table to compare all three options.
Interest Rate
What It Measures
The cost of borrowing the loan principal.
What It Includes
Interest charged on the money borrowed.
What to Compare
APY, fees, and opening requirements.
Question to Ask
“How much interest will I pay to borrow?”
APR
What It Measures
A broader measure of the cost of credit.
What It Includes
Interest plus applicable fees and other finance charges.
What to Compare
Term, APY, withdrawal rules, and renewal terms.
Question to Ask
“Can I leave this money until maturity?”
Account features vary. Review current rates, fees, minimums, and disclosures for the account you select.
From comparing to choosing
A Simple Way to Move Forward
01
What Type of Loan Do You Need
We offer financing for needs ranging from vehicles and recreational vehicles to personal expenses and home equity.
02
Review the Available Terms
Look at how long you would have to repay each loan. Our rate tables show available terms for individual loan products.
03
Compare APRs
Review the APR for comparable loan options rather than comparing an APR from one loan with only the interest rate from another.
04
Look at the Payment
We provide payment examples for many of our loan products. Consider how the estimated payment fits into your monthly budget.
05
Ask About Your Actual Rate
Advertised rates may be listed as “as low as.” Your actual rate may depend on your credit qualifications and other loan-specific factors.
A little more clarity
Questions Worth Asking
A few details can make the choice easier.
Is APR the same as the interest rate?
Not necessarily. The interest rate is the cost of borrowing the principal. APR provides a broader measure by incorporating the interest rate and applicable fees or finance charges associated with the loan.
Why should I compare APR instead of just the interest rate?
APR includes the interest rate plus certain fees, so it gives you a fuller picture of what a loan will cost. To compare offers fairly, look at the APR on each one and make sure the loan amounts and terms are similar.
Does a longer loan term mean a lower rate?
Not necessarily. A longer term may reduce the monthly payment because repayment is spread over more time, but available rates can also vary by term. APRs and payment amounts can differ based on the selected term for certain loan products.
What does “APR as low as” mean?
It means the advertised APR is the lowest rate available under the stated terms and isn’t guaranteed for every borrower. Rates for certain products are determined based on factors such as credit review, selected term, and other applicable lending criteria.
Ready to Compare Your Loan Options?
Review First Commerce Credit Union’s current loan rates, terms, and payment examples to find the options that fit your borrowing needs.
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