The Annual Percentage Rate (APR) is not the interest rate. It is the annual total cost of a home loan to a borrower. It starts with the mortgage interest rate, but also includes origination fees, loan discounts, transaction charges, and any premiums for credit-guarantee insurance. This creates a new, higher loan amount.
The APR is usually higher than the mortgage interest rate. Always ask for the APR. If you are comparing home loans, be sure you are comparing APRs to get a true picture of each loan’s cost.