
Important Fact #1

The higher the rate of interest, the more you pay.
Interest really affects the cost of your loan, so let's explore it a little bit more...Interest is the amount you pay to use someone else's money. Lenders quote this rate to you as an Annual Percentage Rate, or APR.
Let's say you borrow $1,000 at 10% APR. Well, 10% of $1,000 is $100. Does that mean you will pay $100 in interest?
No way! That would be too simple!

