Reviewed by Jeff Shin, NMLS #1041652. Updated .
Also called: APR.
APR vs. interest rate
Per the CFPB, the interest rate is the yearly cost of borrowing the money, with no fees. The APR adds points, mortgage broker fees, and other charges you pay to get the loan. Two loans with the same rate can have different APRs if one carries more fees.
Where to find it
The APR is on page 3 of the Loan Estimate, in the Comparisons section, and again on the Closing Disclosure. Lenders must show it on every offer, so it is one number you can line up across lenders.
What APR does not tell you
APR spreads the upfront costs over the full loan term. If you sell or refinance in a few years, upfront costs weigh more than the APR suggests, and a loan with fewer points may be the better deal. On an adjustable-rate loan, the APR is an estimate because the future rate is not known. Compare offers on the same loan amount, the same lock period, and similar points.
Related terms
Related on BankPricer
Sources
Definitions on this page are summarized from the agencies that set the rules. Lenders can add stricter requirements. Checked October 7, 2026.
Not sure which of these applies to you?
That is usually the actual question. Send the situation rather than the product name — purchase or refinance, primary or investment, price range, and timeline — and you get the structures that fit, with what each one costs.