Quick answer
APR (annual percentage rate) is the yearly cost of a mortgage expressed as a percentage, combining the interest rate with points, mortgage broker fees and other finance charges you pay to get the loan. It is a broader measure of cost than the interest rate alone.
Key facts
7.24%
30-year fixed average (used in the example)
Freddie Mac Primary Mortgage Market Survey · Week of Oct 29, 2026
APR vs the interest rate
Your monthly payment is set by the interest rate. The APR doesn’t change the payment; it spreads the loan’s upfront finance charges over the term so two offers with different fees can be compared on one scale. A loan with no points and few fees has an APR close to its rate. Third-party costs such as the appraisal or title insurance generally aren’t included.
Example
Take a $300,000 30-year loan at 7.24% with one discount point ($3,000) and $2,000 of other lender charges. The payment is $2,044 a month either way, but you effectively receive only $295,000. Solving for the rate at which that amount produces the same payment gives an APR of about 7.41%, or 0.17 percentage points above the note rate.
Because the APR assumes you keep the loan for the full term, upfront fees cost more per year than it shows if you sell or refinance early.
Where it appears
The APR is in the Comparisons section on page 3 of the Loan Estimate and on the Closing Disclosure. If it rises by more than 0.125% on a regular loan after you get the Closing Disclosure, you get a new waiting period before closing. See the Loan Estimate guide for the rest of the form.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- CFPB — Cost of one discount point (share of loan amount) (Oct 19, 2023)
- 12 CFR 1026.22 — APR change that triggers a new 3-business-day wait (regular loans) (Oct 28, 2026)
- CFPB: What is the difference between a mortgage interest rate and an APR?
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.