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The interest rate is the cost of borrowing the principal amount. APR (Annual Percentage Rate) includes the interest rate plus other fees and costs associated with the loan, giving you a more complete picture of the loan's total cost. APR is typically higher than the stated interest rate.

Making extra payments can significantly reduce your total interest paid and shorten your loan term. However, first check if your loan has prepayment penalties. Also consider if you'd be better off investing that money or paying down higher-interest debt first. Use our extra payment feature to see exactly how much you could save.

Most lenders prefer a debt-to-income (DTI) ratio below 36%, with no more than 28% going toward housing. A DTI above 43% may make it difficult to qualify for new loans. The lower your DTI, the better position you're in for favorable loan terms.

Shorter loan terms mean higher monthly payments but less total interest paid. Longer terms lower your monthly payment but increase total interest significantly. For example, a 3-year auto loan might have payments 40% higher than a 5-year loan, but you'll pay much less in interest overall.

Yes, if interest rates have dropped or your credit has improved since taking out your loan, refinancing could save you money. However, consider closing costs and how long you plan to keep the loan. Generally, you should break even on refinancing costs within 2-3 years. Be cautious about extending your loan term when refinancing.