People get freaked out by the difference between APR and effective loan rate quoted on loan documents. Often, the effective loan rate is higher than the quoted APR because fees (doc stamps, loan booking charges, etc.)are financed into the loan as part of the interest, rather than the principle. Which is nice, actually, since that way you don't end up paying interest on a tax or fee as well as the money you borrowed. It does, however, dink with the calculations in strange and mysterious ways, and many of the people who close loans every day have no idea why there is a difference.