Common AcronymsHomebuying Glossary

APR

Also known as Annual Percentage Rate

The true yearly cost of a loan, including interest rate plus most lender fees.

In plain English

APR expresses your loan's total yearly cost as a single percentage, folding in not just the interest rate but also many lender fees and points — making it a more complete number for comparing loan offers than the interest rate alone.

Why it matters

Two loans with the same interest rate can have different APRs — always compare APRs, not just quoted rates, when shopping lenders.

Where you'll run into it

Guides and tools on TheBuyingPath that cover apr in context.

Related terms

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