APR - Annual Precentage Rate

APR is the annualized rate of interest including the sum of fees and costs charging during such time on the loan.  By law, all mortgage lenders must disclose such total sum of fees and interest, and a total APR percentile.

APR, not to be confused as just the note rate, which is calculated as interest without loan fees added to produce a total cost of loan.standard way,

With home loans, to make things more easily to compare with one lender versus another, APR is a factor that should be considered, as it takes in account several factors to configure the costs and payments of the loan, such as the interest rate of the home loan, closing costs (orgination fees, points, title, attorney fees..), mortgage insurance, (also known as PMI or MIP).

APR is a great way to compare loan offers, however monthly payments or whether the home owner anticpates on staying in the home short term or long term/investment, are also things to consider.  Sometimes a lower rate with higher closing costs, may be a better solution for than a program that offers a higher rate, but with virtual or no closing costs, or vise-versa.