The annual percentage rate is the cost of borrowing money from the lender, shown as a percentage of your mortgage amount. The APR includes the interest rate as well as all other fees that are paid over the life of the loan.

FHA.com: Home Purchase and Refinance Loans

FHA Loan Programs for 2024

The most recognized 3.5% down payment mortgage in the country. Affordable payments w/good credit.

Are You Watching Your Credit Score?




- Improving Your Credit Score Has Never Been More Important -

FHA.com is a privately owned website, is not a government agency, and does not make loans.
FHA Home Loans

Choose a Loan Type

FHA.com is a privately owned website, is not a government agency, and does not make loans.

APR

Related Terms: Annual Percentage Rate
The APR, or annual percentage rate, is the cost you incur for borrowing money. When it comes to your mortgage, it is calculated using your interest rate, broker fees, closing costs, and all other charges that are required to finance the loan, which is why the APR is usually higher than your interest rate. 
APR
The APR is calculated by spreading all additional fees out over the life of the loan, as if part of your monthly payments, resulting in a different percentage than the interest rate.

It’s important to remember that the APR quoted in the disclosures is just one metric, and definitely not the only one you should be considering when shopping for mortgages. Many people believe that the APR represents the “true cost” of a mortgage, and so they go with the lowest one they can find believing that they found the best loan. However, this isn’t always the case.

Depending on the amount of time you plan to stay on your home, it may be beneficial to go with a slightly higher APR and avoid higher upfront fees.  

Do you know what's on your credit report?

Learn what your score means.