Looking for ideas/ways/examples of how bankers can easily explain the difference to a customer in APR and interest rate. Scenario is where customers does a rate buy down and they finance it. APR is higher than rate. Customer wants to know why and bankers don't want technical terminology. I tend to get technical. Any ideas?

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Federal Reserve has a couple publications available. Take a look at:
http://www.federalreserve.gov/pubs/brochure.htm

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Al Miller, CRCM
(510) 790-5825
(510) 505-5211 FAX

Opinions expressed are my own and not necessarily shared by my employer.

Very simplistic, the interest rate represents the constant rate on the funds you are borrowing. The APR represents the interest rate plus additional costs attributed to the loan. The idea is to provide a representation on the overall costs.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.

Thanks everyone. Al---those publications had some good info as well.