What is APR on a mortgage?

APR stands for “annual percentage rate.” The term is used to explain the actual cost of borrowing money more precisely. APR combines the loan’s interest rate, broker fees, origination fees, and other closing costs. By including these fees in tandem with the annual interest rate, the APR will express your annual mortgage expenses as a percentage of the loan amount.

Generally speaking, the APR will be higher than your loan’s interest rate because it incorporates all of your loan costs.