Interest Rate is the percentage used to calculate your payment
Annual Percentage Rate (or APR) is the TOTAL cost of the loan expressed as a percentage
It’s what the interest rate would be IF it included things like origination fees, mortgage insurance premiums, settlement fees and “points”
Although it doesn’t affect your monthly payments, APR can be useful as a way to compare loans that have similar interest rates, but differences in fees.
And that’s the difference between interest rate and APR. Want to find out more? Visit the learning center for more tools and resources