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What is “APR” and why is it different from my interest rate?

April 26, 2017Apr different Interest rate

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What is “APR” and why is it different from my interest rate?

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Your interest rate is used to calculate your monthly payments. The APR (Annual Percentage Rate) is the total yearly cost of a mortgage, which includes the base interest rate, mortgage insurance, loan origination fees and other expenses such as property taxes, and stated as the percentage of the loan amount.

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Your interest rate, commonly called the note or base rate, is the rate used calculate your monthly payments. The Annual Percentage Rate (APR), is the total yearly cost of a mortgage. It is stated as a percentage of the loan amount which includes the base interest rate, mortgage insurance, loan origination fees, points and certain other expenses (if any).