Interest Rate vs. APR

There’s a distinct difference between an interest rate and an annual percentage rate.

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What’s the difference between your interest rate and APR (annual percentage rate)?

Basically, the interest rate is the cost of borrowing the principal of the loan, while the APR is a broader measure of the cost of the mortgage. The APR includes not just the interest rate, but also broker fees, discount points, and closing costs. This is why the APR is always higher. 

When you get a quote from a lender, it’s important to look at the difference between these numbers to make sure you’re not being overcharged.

The interest rate is the cost of borrowing the principal of the loan, while the APR is a broader measure of the cost of the mortgage.

Since I’m a Realtor with Keller Williams, I can help you qualify for a zero-cost mortgage through Keller Mortgage. You’ll pay no fees for this mortgage—not even the appraisal. You’ll have more buying power and make your offer more attractive should you find yourself in a multiple-offer situation.

If you’re looking to refinance, you can qualify for a zero-cost refinance through Keller Mortgage, which will save you a lot on your monthly payment. 

If you have any questions about this topic or these programs, don’t hesitate to reach out to me. I’d love to help you.