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What is the difference between the mortgage rate and the APR?

April 26, 2017Apr difference mortgage rate

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What is the difference between the mortgage rate and the APR?

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The APR (Annual Percentage Rate) of a loan is supposed to be an overall interest rate with all the applicable closing costs factored in. Unfortunately, not all lenders include the same costs so not all APRs are created equally. Use the APR as a general guide to the overall cost of the loan but keep in mind that you have to look at the details of what’s included to be sure.