Mortgage Interest Rate
The mortgage interest rate is the amount charged by a lender in exchange for loaning money to a buyer. It is a yearly percentage of the total loan amount and is calculated into the monthly mortgage payment.
Annual Percentage Rate (APR)
APR (%) is a number designed to help you evaluate the total cost of a mortgage. In addition to the interest rate, it takes into account the fees other costs you may encounter over the life of the loan. The APR is calculated according to federal requirements and is required by law to be stated in all home mortgage estimates. This allows you to better compare how much mortgage you can afford from different lenders and to see which is the right one for you.
