APR vs. interest rate: What’s the difference?

Key takeaways The interest rate on a mortgage indicates how much interest you’ll pay for the amount you borrow. The annual percentage rate (APR) is the interest rate plus additional fees and any points. When comparing loan offers, it’s best to compare APRs to get a fuller picture of the true cost of the financing. Understanding the distinction between a mortgage loan’s interest rate and annual percentage rate (APR) can make you a more savvy mortgage shopper — and potentially save you some money alon ...