What’s the difference between APR & EAR and when taking a mortgage which one is more relevant to me?
The main difference between the two is that EAR takes compound interest into account, whereas APR takes only simple interest into account. For mortgages, APR’s are more useful and relevant.
APR is based on simple interest, while EAR takes compound interest into account. APR is generally used for evaluating mortgage and auto loans, while EAR is used to evaluate frequently compounding loans such as credit cards.