What is The Difference Between the Mortgage Interest Rate and the APR?

The APR (Annual Percentage Rate) of a loan is supposed to be an overall interest rate with all the applicable closing costs factored in.

The actual mortgage rate that you locked will be what your mortgage payment, is based off of.

Unfortunately, not all lenders include the same costs so not all APRs are created equally. Use the APR as a general guide to the overall cost of the loan but keep in mind that you have to look at the details of what’s included to be sure.


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