What’s APR (and why should you care when buying a home)?

Let’s make this easy — no math, no finance degree needed.

When you’re shopping for a mortgage, you’ll see two main numbers:👉 Interest Rate👉 APR (Annual Percentage Rate)

Most people lock in on the interest rate — and that’s important. But it doesn’t tell the whole story.

Here’s the deal:

• The interest rate is what you’re charged to borrow the money.

• The APR includes the interest rate plus extra costs tied to getting the loan — like lender fees, points, and other closing costs.

So the APR is supposed to show the real cost of the loan over time.But here’s the catch:Some lenders don’t show an accurate APR. They might leave certain fees out or present it in a way that makes their offer look better than it really is.

That’s why it’s important to look at two things:

1. The interest rate

2. The cost to get that rate

If one lender shows a lower rate, but it comes with higher fees, it might not be the better deal.The true cost of the loan is what matters — not just the headline number.

Think of it like booking a flight:

• The interest rate is the price of the seat.

• The APR is the full cost of flying — seat, bags, snacks, seat selection, and all those little charges they add at checkout.

When you’re comparing lenders, don’t just ask, “What’s the rate?”Ask, “What’s the cost to get that rate?”

Want help breaking it down? I’ll show you how to compare offers the right way — no stress, no guesswork.