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As Wikipedia describes it that is not a flat rate loan. If I borrow $100,000 for 15 years at 5% it would cost me $183,389; and I expect to see that in the disc
by cpwright 13y ago
As Wikipedia describes it that is not a flat rate loan. If I borrow $100,000 for 15 years at 5% it would cost me $183,389; and I expect to see that in the disclosure. But that is still a regular APR. A flat rate 5%, would mean that each year I pay 5% in interest on the $100,000; even though I've already paid off some of the principal. So I would end up paying $200,000 in total.