What is APR? - Definition

What is APR? - Definition
APR is an acronym for Annual Percentage Rate. The annual percentage rate is the interest rate that reflects the cost of a mortgage in terms of a yearly rate. The yearly rate includes the note rate and

then adds the costs associated with the loan on top of the note rate. Costs associated with doing the loan include points and closing costs (lender and title fee's). It is important to know and understand that the APR is not the note rate. The APR does allow homebuyers to compare different types of mortgages based on the annual cost for each loan.