“I just read your column on APR’s and I wanted to make a couple comments. If one is talking about savings accounts or CD’s, then the method of compounding might be the main thing that affects the APR, although as computers have taken over the banking industry I don’t know if anyone still compounds quarterly, or even monthly. But in my experience, when one is talking about home loans, the APR is mainly affected by the points and/or fees on the loan. There exist no-point, no-fee loans where the APR is the same as the nominal rate, but the APR for the other loans takes into account these points or fees.” – Greg Buliavac

A.T.: When I think APRs, I think savings accounts. But you’re right. Thanks, Greg.

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“Speaking of dumb luck (as in forgetting about GTC Limit orders), the following has happened to me twice: I went into the trade screen of my online broker and instructed them to trade 100 shares of a stock I was holding so that I could realize a tidy profit. Upon checking the status of the trade later I realized that I hadn’t indicated the trade was a sell, and therefore the default of ‘BUY’ was executed. Instead of selling 100 shares, I now owned 200 shares. Fortunately both times the stock has risen, so that when I remedied my mistake I actually made a few hundred extra. Whew! Counting my blessings in NC. (Don’t use my name in column please, too embarrassing. ;-)” – A.T.: For a few hundred extra, I agreed not to use his name.



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