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!