What is the Difference Between Interest Rate and APR?

Buyers are often confused about the difference between the Interest Rate and the Annual Percentage Rate (APR).  

The interest rate is a percentage of the principal loan amount, and reflects the base cost of borrowing the money.

The Annual Percentage Rate (APR) takes the base interest rate and adds to it the additional costs to get the loan.

What are these additional costs?

And, why is it important and useful for the buyer to know and understand the APR?

First Time Home Buyer? 10 Steps To Take Now

Are you a first-time homebuyer looking to purchase your first home?

Here are 10 steps to take to help you decide whether you're ready to move:

1. Check the selling prices of comparable homes in your area. Do a quick search of actual MLS listings in the area where you would like to live so you have an idea of what you can get for your money.

2. Use our mortgage calculator to get an idea of what your monthly mortgage payments would be if you bought today.

A standing ovation to our Top Listing Brokers!

A standing ovation to our Top Listing Brokers!

Dympna Fay-Hart Jan Robertson  Martha Silveyra (Not Pictured) and Marti Corcoran