The rate of interest on a loan, expressed as a percentage.
When shopping for a Glossary Term: mortgage or thinking about refinancing your mortgage, keep in mind that an advertised Glossary Term: interest rate isn’t the same as your loan’s Glossary Term: annual percentage rate (APR). What’s the difference?
Why the difference? The APR is intended to give you more information about what you’re really getting. By making Glossary Term: lender fees part of the equation, you can better see the true cost of a loan and make a fair comparison.
Keep in mind that the APR is for comparison between lenders only. The interest rate quoted is the actual interest rate you would pay on the loan.
So evaluate carefully when you look at the Glossary Term: rates lenders offer you. Compare one loan’s APR against another loan’s APR to get a fair comparison of total cost—and be sure to compare actual interest rates, too.