What Is the Difference Between Interest Rate and APR (Annual Percentage Rate)?

Posted from: https://www.zillow.com/blog/what-is-the-difference-between-interest-rate-and-apr-annual-percentage-rate-1005/

Home shoppers who have begun looking into mortgages often wonder about the difference between interest rate and APR (Annual Percentage Rate). Basically, think of the interest rate as the starting point in what you will pay for a mortgage loan, then tack on associated fees to calculate the APR.

To better understand these concepts, let’s begin with some definitions:

What is the interest rate?

The interest rate is the percentage of the loan amount that is charged for borro…

Posted from: https://www.zillow.com/blog/what-is-the-difference-between-interest-rate-and-apr-annual-percentage-rate-1005/

Home shoppers who have begun looking into mortgages often wonder about the difference between interest rate and APR (Annual Percentage Rate). Basically, think of the interest rate as the starting point in what you will pay for a mortgage loan, then tack on associated fees to calculate the APR.

To better understand these concepts, let’s begin with some definitions:

What is the interest rate?

The interest rate is the percentage of the loan amount that is charged for borro…

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