# APR, TIP and Cost-Over-Time Comparisons In Loan Estimates

The Loan Estimate form helps you compare different loans; Page 3 of the form summarizes the key figures.

- Cost-over-time figures (“In ___ Years”) chart out the total amount paid, and the amount applied against loan principal. This ratio usually changes over time.
- Annual Percentage Rate – APR – gives you the ratio of interest PLUS any applicable fees for a complete percentage cost, per year.
- Total Interest Percentage – TIP – shows interest over the life of the loan, in relation to the loan amount. For example, a $500K loan with a TIP of 20% indicates that you would pay $600K (20% of $500K = $100K) in total.