The APR - (Annual Percentage Rate) is a federally required calculation of what your rate would be if you rolled all your cost into your loan. In other words, if we took all your cost of getting into the home (with the exception of your down payment) and rolled it into the interest rate. Please keep in mind that the APR is NOT how your payment is calculated. The APR will come on your Truth-in-Lending (TIL) disclosure, and quite often the APR is higher than the actual note rate.