The mortgage dictionary is a section of the website that allows you to know in detail the definition of all the terms related to the contracting of a mortgage or mortgage product, one of the financial operations that must be thought about and analyzed the most because it involves a significant debt that will be paid over several years. The Notary Bosch-Bages of Barcelona wants with this page to facilitate the knowledge of the most important concepts related to this type of Notarial services related to mortgages.

TweetWhat is the APR?

As provided by the Law, it understands the Annual Equivalent Rate (APR) as “the total cost of the loan for the borrower, expressed as an annual percentage of the total amount of the loan granted, plus the associated costs, if applicable, and correspondingly, on a annual basis, at the present value of all future or existing commitments, such as provisions of funds, reimbursements and expenses, agreed by the lender and the borrower ”.


How is it calculated?

It is calculated by means of a mathematical operation, which expresses the nominal interest rate, the commissions, and the term of the operation. It is expressed as a percentage and indicates the “cost” of the mortgage, with the utility of comparing the different mortgage credit offers available at financial institutions. 
Consult BOE Law 5/2019, of March 15, regulating real estate credit contracts
Tags: Law, Mortgage.

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