February 12th, 2013 9:22 AM by Jill Kohler
What is an APR? This is the annual percentage rate. The APR is the true interest rate you’ll pay over the full term of the loan. Many people confuse the APR with the interest rate, they are not the same thing. The interest rate is used as a basis for monthly mortgage payments and doesn’t calculate in the other loan charges. However the APR factors in lender fees, mortgage insurance, lender fees, etc. The APR is one of the many tools used to compare mortgages.