# What Is Stated Interest Rate

When you’re shopping for a loan the stated interest rate is the initial rate you’re quoted. But that’s not necessarily the rate you’ll actually pay. The stated rate is usually a “teaser rate” that’s lower than the rate you’ll pay after the introductory period ends.

The stated interest rate is also called the “nominal” or “advertised” rate. It’s the rate that’s used to calculate your monthly payment but it doesn’t reflect the total cost of your loan. The true cost of your loan includes the stated rate plus any additional fees or charges.

The stated interest rate is important but it’s not the only factor to consider when you’re shopping for a loan. Be sure to compare the total cost of the loan including the stated rate and any fees or charges. That’s the only way to determine which loan is right for you.

## What is a stated interest rate?

Answer 1: A stated interest rate is the percentage of interest that is specified in a loan agreement.

## How is the stated interest rate used?

Answer 2: The stated interest rate is used to calculate the amount of interest that will be charged on a loan.

## What factors can affect the stated interest rate?

Answer 3: The stated interest rate can be affected by the creditworthiness of the borrower the amount of the loan and the length of the loan.

## What is the difference between a stated interest rate and a variable interest rate?

Answer 4: A stated interest rate is a fixed interest rate that will not change over the life of the loan.

A variable interest rate can change over time depending on the market conditions.

## How can a borrower find out the stated interest rate on a loan?

Answer 5: The stated interest rate should be clearly stated in the loan agreement.

## Is the stated interest rate always the same as the actual interest rate?

Answer 6: No the stated interest rate is the interest rate that is specified in the loan agreement.

The actual interest rate may be higher or lower than the stated interest rate.

## How can a borrower find out the actual interest rate on a loan?

Answer 7: The actual interest rate can be found in the loan agreement or in the loan disclosure statement.

## What is the Annual Percentage Rate?

Answer 8: The Annual Percentage Rate is the total amount of interest that will be charged on a loan over the course of one year.

## How is the Annual Percentage Rate used?

Answer 9: The Annual Percentage Rate is used to compare the total cost of different loans.

## What factors can affect the Annual Percentage Rate?

Answer 10: The Annual Percentage Rate can be affected by the stated interest rate the length of the loan and the fees associated with the loan.

## What is the difference between the Annual Percentage Rate and the interest rate?

Answer 11: The Annual Percentage Rate is the total amount of interest that will be charged on a loan over the course of one year.

The interest rate is the percentage of interest that will be charged on the loan.

## Is the Annual Percentage Rate always the same as the actual interest rate?

Answer 12: No the Annual Percentage Rate is the total amount of interest that will be charged on a loan over the course of one year.

The actual interest rate may be higher or lower than the Annual Percentage Rate.

## How can a borrower find out the Annual Percentage Rate on a loan?

Answer 13: The Annual Percentage Rate can be found in the loan agreement or in the loan disclosure statement.

## What is the APR?

Answer 14: APR is the Annual Percentage Rate.

## How is the APR used?

Answer 15: The APR is used to compare the total cost of different loans.