What is the APR and how does it affect my refinance?
Home loans are more than interest rates and points. They also involve other costs, fees and expenses. The APR expresses the annual cost of a loan as a percentage, factoring in not only its rate, but also the points and other costs, fees and charges over the life of the loan. This is why most people call it the “true rate” of the loan. To make an accurate comparison, compare loans with the same terms, interest rates and points. Then look at the APR. The loan with the lower APR is the less expensive loan.
