The answer to that question is the government. The A.P.R. idea was started for cars which are generally financed three to five years. If you could look at the Annual Percentage Rate, you quite possibly would pick the lowest interest offer instead of trying to figure it out for yourself. Hint: The government doesn't think you are very smart. As my mother would have said to that, "likewise, I'm sure." What works for automobiles, although we aren't that positive as all the American car manufacturers are bankrupt (except Ford), doesn't come close to working for the mortgage or home finance industry. We finance homes for 1 year up to 40 or 50 years and during that time, the rate can change 100 times. Put that in a formula and let the people use it!
Roger Schlesinger's Mortgage Minute is heard on hundreds of radio stations and daily on the Hugh Hewitt radio show and Michael Medved shows. Roger interacts with his hosts and explores the complicated financial markets in order to enlighten his listeners and direct them along their own unique road to financial freedom.