Financial
Annual Percentage Rate (APR)
The total yearly cost of borrowing, expressed as a percentage, which includes the interest rate plus lender fees and other charges. APR gives you a more complete picture of a loan's true cost than the interest rate alone. For example, a mortgage with a 6.5% interest rate might have a 6.8% APR once origination fees and points are factored in. Always compare APRs when shopping for mortgages.
Why It Matters
Annual Percentage Rate (APR) directly affects how much you pay for your home and how you build wealth through homeownership. Understanding the financial mechanics of your mortgage helps you make choices that save money over the long term.
Use mortgage calculators to see how annual percentage rate (apr) impacts your specific numbers. Even small differences in financial terms can add up to tens of thousands of dollars over the life of a 30-year mortgage.