What is an Annual Percentage Rate?
An Annual Percentage Rate (APR) is a measure of the total cost of a loan, expressed as a nominal yearly rate. Think of it as an aggregate of all loan-related costs—interest (of course), but also certain closing costs and any mortgage insurance. The logic: if some of the closing costs you pay when you close on your mortgage are loan-related, you should consider these costs in addition to the interest that you pay when assessing the total cost of a loan and comparing one loan to another.
In addition to our glossary, we have a library of downloadable PDFs that cover annual percentage rates, and other mortgage fundamentals.
Subscribe to our YouTube channel!
We have a growing YouTube library of videos covering every part of the mortgage process. Head over and explore, and don’t forget to subscribe (and turn on notifications so you don’t miss new videos!)
