Understanding the difference between interest rate and APR is crucial when comparing mortgage offers. Interest rate is the cost to borrow money, while APR includes fees. APR gives a clearer picture of the true cost of financing. Your specific rate is based on credit score, DTI ratio, and down payment size.

APR is expressed as a percentage and includes interest rate and fees. Determining APR involves interest rate, fees, and points paid upfront. Comparing APRs helps understand the total cost of the loan. Lowering APR can save money by finding lenders with fewer fees or making a larger down payment.

Read more at Yahoo Finance: APR vs. interest rate: What’s the difference?