Question about APR

[gryzor]

hi i have a question about APR. I always thought that the APR was the figure to look at when chosing a mortgage. plugging in the following figures into primafinance gave me the attached results..

€190,000, over 25 years, 3 year fixed

how is the interest rate higher that the APR in some cases???

[broken link removed]

 

[dam099]

hi i have a question about APR. I always thought that the APR was the figure to look at when chosing a mortgage. plugging in the following figures into primafinance gave me the attached results..

€190,000, over 25 years, 3 year fixed

how is the interest rate higher that the APR in some cases???

[broken link removed]

AFAIK when calculating the APR for a fixed rate product they use the fixed rate for the fixed term then revert to the standard variable rate for the remainder of the mortgage term. Since the variable rate will generally be lower than the fixed rate this brings down the APR.