What is an APR?
Jack O'Donohue avatar
Written by Jack O'Donohue
Updated over a week ago

An Annual Percentage Rate (APR) reflects the mortgage interest rate plus other costs, which is charged to borrowers and paid to lenders. Many costs are associated with taking out a mortgage. The interest rate is the cost of borrowing the principal loan amount over the whole length of the mortgage term. The APR is a broader measure of the cost of a mortgage because it also includes the interest rate plus other costs such as broker fees, discount points and some closing costs. APR is always shown as a percentage and reflects the yearly cost of borrowing funds over the length of the loan.

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