The annual percentage rate (APR) is an interest rate that is different from the note rate. It is commonly used to compare loan programs from different lenders. The Federal Truth in Lending law requires mortgage companies to disclose the APR when they advertise a rate. Typically the APR is found next to the rate. The APR does NOT affect your monthly payments. Your monthly payments are a function of the interest rate and the length of the loan.

The Annual Percentage Rate, or APR, is the cost of the borrower's credit expressed in terms of an annual rate. Because the borrower may be paying "points" and other closing costs, the APR disclosed is often higher than the interest rate on the loan. The APR can be compared to other loans for which the borrower may have applied and give them a fair method of comparing price. appraisal of real estate is the valuation of the rights of ownership.

The APR the cost of your credit expressed as an annual rate. Because you may be paying different charges such as, "Discount Points" and other "pre-paid finance charges" at closing, all these charges are added to the interest charge for the loan (which appears on the note). The total of these charges added to the loan amount will result in a higher amount than the loan rate only for the first year of the loan.