{"id":330687,"date":"2026-04-09T08:08:29","date_gmt":"2026-04-09T12:08:29","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=330687"},"modified":"2026-04-09T08:08:35","modified_gmt":"2026-04-09T12:08:35","slug":"apr-vs-interest-rate","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/apr-vs-interest-rate\/","title":{"rendered":"APR vs Interest Rate: What Is the Difference?"},"content":{"rendered":"\n<p class=\"highlight\">The interest rate is the cost you pay for borrowing money, while the APR includes that rate plus other costs such as lender fees. APR (Annual Percentage Rate) is the total cost associated with borrowing. APR costs include interest rates, <a   href=\"https:\/\/www.houzeo.com\/blog\/mortgage-origination-fee\/\" target=\"_blank\" rel=\"noreferrer noopener\">origination fees<\/a>, insurance, etc.<\/p>\n\n\n\n<p>In 2026, with mortgage rates hovering near 7% and lenders offering different fee structures, this distinction matters more than ever. A loan with a lower interest rate may still end up costing you more overall if the fees are high.<\/p>\n\n\n\n<p>Before you commence your <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-buy-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">home-buying<\/a> journey, calculate all the associated costs now.<\/p>\n\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-custom-accordion custom-accordion\">\n<div class=\"wp-block-custom-accordion-item accordion-item\"><button class=\"accordion-header\"><span class=\"accordion-title\">\ud83c\udfe0 What is Houzeo?<\/span><img decoding=\"async\" loading=\"lazy\" width=\"840px\" height=\"450px\" class=\"accordion-icon\" src=\"https:\/\/dtpwvruv8ddnl.cloudfront.net\/images\/flat-fee-mls\/faqArrow.svg\" alt=\"toggle\"\/><\/button><div class=\"accordion-content\">\n<p>Houzeo is America&#8217;s best home buying and selling platform.<\/p>\n\n\n\n<p><strong>For Home Sellers:<\/strong> List your home for a Flat Fee, and save 2.5% to 5.5% on the listing agent commission! That&#8217;s thousands of dollars extra in your pocket.<\/p>\n\n\n\n<p><strong>For Home Buyers:<\/strong> Houzeo has the most number of <a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\" target=\"_blank\" rel=\"noreferrer noopener\">houses for sale in US<\/a>. Start your dream home search now!<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-custom-accordion custom-accordion\">\n<div class=\"wp-block-custom-accordion-item accordion-item\"><button class=\"accordion-header\"><span class=\"accordion-title\">\ud83d\udcf1 Does Houzeo have a mobile app?<\/span><img decoding=\"async\" loading=\"lazy\" width=\"840px\" height=\"450px\" class=\"accordion-icon\" src=\"https:\/\/dtpwvruv8ddnl.cloudfront.net\/images\/flat-fee-mls\/faqArrow.svg\" alt=\"toggle\"\/><\/button><div class=\"accordion-content\">\n<p>Yes! You can list your home for sale or search millions of homes on the Houzeo mobile app!<\/p>\n\n\n\n<p>Download now on the <a   href=\"https:\/\/apps.apple.com\/app\/id1576836461\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Apple App Store<\/a> or the <a   href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.houzeo.houzeo&#038;pli=1\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Google Play Store<\/a>.<\/p>\n<\/div><\/div>\n<\/div>\n\n\n\t<div  class=\"hfsWidget \" data-widget-title=\"Find your dream home \ud83c\udfe0\" data-widget-list-item1=\"1st item\" data-widget-list-item2=\"2nd item\" data-widget-list-item3=\"3rd item\" data-widget-type=\"buyer1\" data-widget-vendor-type=\"inspector\" data-widget-state=\"us\" data-widget-city=\"\" data-widget-redirect-url=\"https:\/\/www.houzeo.com\/homes-for-sale\" data-widget-redirect-text=\"Homes for sale\" data-widget-button-url=\"https:\/\/www.houzeo.com\" data-widget-button-text=\"\" data-widget-min-price=\"0\" data-widget-max-price=\"0\" data-widget-min-area=\"0\" data-widget-max-area=\"0\" data-widget-sidebar=\"false\">\n        <div class=\"widgetMainBox mainBox456\">\n        <div class=\"widgetBox widgetBox3 buyer-one\">\n            <div class=\"widgetTop\" style=\"display: flex;\">\n                <div class=\"widgetTopcont\">\n                    <div class=\"homePageQuickListing -page homepage widgetInBox3 hfs_new_design_widget\">\n                      <div class=\"HeaderTopSidebar\"> \n                        <p class=\"headerStyle\">Find your dream home \ud83c\udfe0<\/p>\n                                                                         <div class=\"widgetList skeleton skeleton-text\">\n                            <p>View 1,617,152 homes for sale in <span\n                            class=\"propertyStateSpan\">US<\/span><\/p>                            \n                        <\/div>\n                                                                      <\/div>  \n                        <div class=\"verifyFieldForm addInput\">\n                            <div class=\"inputSearchBox\">\n                                <div class=\"inputBoxElement addressBar\">\n                                    <input type=\"text\" name=\"ITBTtRE\" id=\"buyerAutocomplete\"\n                                        placeholder=\"Enter an address, city, neighborhood, or ZIP\"\n                                        class=\"pac-target-input buyerAutocomplete\" autocomplete=\"off\">\n                                <\/div>\n                                <span class=\"errorStreetMsg errorMsg\">Please enter valid address<\/span>\n                            <\/div>\n                            \n                            <div class=\"inputSubmitBox\">\n                                                                <button id=\"buyerBtnBox456\" class=\"continueCta storeAddress next_btn buyerBtnBox\">Search\n                                    <span class=\"arrowContinue\"><\/span><\/button>\n                            <\/div>\n                        \n                        <\/div>\n                    <\/div>\n                <\/div>\n            <\/div>\n            <div class=\"widgetInsideBox\">\n                <div class=\"widgetPropertyBoxNew\" id=\"propertyContainer\">\n                <div class=\"widgetPropertyInnerBox\">   \n                 \t\t\t\t\t\t   <div class=\"widgetPropColumnNew halfWidthCard\">\n\t\t\t\t\t\t\t  <a href=\"https:\/\/www.houzeo.com\/homes\/23-plain-st-taunton-ma-02780\/hzid_5e8ce56e\" class=\"widgetAnchorColumnLink\" target=\"_blank\" >\n\t\t\t\t\t\t\t\t   <div class=\"widgetImageBox\">\n\t\t\t\t\t\t\t\t\t   <img decoding=\"async\" src=\"https:\/\/cdn.houzeo.com\/idx\/media\/70\/MPINM1c8000dd9f708b10039141d35418045e\/1_1c8000dd9f708b10039141d35418045e-m1_52d52e42f9_dim_640X450.webp\" alt=\"\" onerror=\"this.src='https:\/\/dtpwvruv8ddnl.cloudfront.net\/seller\/listing\/uploads\/listing_images\/thumbnails\/empty-property.jpg';\">\n\t\t\t\t\t\t\t\t\t   \t\t\t\t\t\t\t\t\t\t\t\t   <img decoding=\"async\" src=\"https:\/\/dtpwvruv8ddnl.cloudfront.net\/images\/idx\/MLSPINLogo-xs.webp\" alt=\"logo\" class=\"insideWidgetLogo\">\n\t\t\t\t\t\t\t\t\t\t\t\t   \t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t   <div class=\"widgetTextBox\" >\n\t\t\t\t\t\t\t\t\t   <p class=\"priceText\">$629,900<\/p>\n\t\t\t\t\t\t\t\t\t   <span class=\"addressText\">\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t23 plain st, <br\/>taunton, MA 02780\t\t\t\t\t\t\t\t\t<span class=\"suummarize-info grey-img\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/dtpwvruv8ddnl.cloudfront.net\/images\/blog\/blog-info-gray.svg\" alt=\"\">\n\t\t\t\t\t\t\t\t\t\t <span class=\"voult-tooltip-box\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-wrap\">\n\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"fz-12\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\tListing Provided by: Philip Elias | Elias Group Realty <br>\t\t\t\t\t\t\t\t\t\t\t\t\tSource: MLS Property Information Network-MA | MLS#: 73495458<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t   <\/div>\n\t\t\t\t\t\t\t   <\/a>\n\t\t\t\t\t\t   <\/div>\n\t\t\t\t\t\t   \t\t\t\t\t\t   <div class=\"widgetPropColumnNew halfWidthCard\">\n\t\t\t\t\t\t\t  <a href=\"https:\/\/www.houzeo.com\/homes\/2451-nw-old-thompson-bridge-rd-gainesville-ga-30501\/hzid_4f8a16d8\" class=\"widgetAnchorColumnLink\" target=\"_blank\" >\n\t\t\t\t\t\t\t\t   <div class=\"widgetImageBox\">\n\t\t\t\t\t\t\t\t\t   <img decoding=\"async\" src=\"https:\/\/cdn.houzeo.com\/idx\/media\/46\/GEM9766fd54d6a264f6e30f8e6b57b68227\/1_a77f30cddbf0a8115ad1c95eaed69354_64579e170e_dim_640X450.webp\" alt=\"\" onerror=\"this.src='https:\/\/dtpwvruv8ddnl.cloudfront.net\/seller\/listing\/uploads\/listing_images\/thumbnails\/empty-property.jpg';\">\n\t\t\t\t\t\t\t\t\t   \t\t\t\t\t\t\t\t\t\t\t\t   <img decoding=\"async\" src=\"https:\/\/dtpwvruv8ddnl.cloudfront.net\/images\/idx\/GAMLSIDXLogo-xs.webp\" alt=\"logo\" class=\"insideWidgetLogo\">\n\t\t\t\t\t\t\t\t\t\t\t\t   \t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t   <div class=\"widgetTextBox\" >\n\t\t\t\t\t\t\t\t\t   <p class=\"priceText\">$2,500,000<\/p>\n\t\t\t\t\t\t\t\t\t   <span class=\"addressText\">\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t2451 nw old thompson bridge rd, <br\/>gainesville, GA 30501\t\t\t\t\t\t\t\t\t<span class=\"suummarize-info grey-img\">\n\t\t\t\t\t\t\t\t\t\t<img decoding=\"async\" src=\"https:\/\/dtpwvruv8ddnl.cloudfront.net\/images\/blog\/blog-info-gray.svg\" alt=\"\">\n\t\t\t\t\t\t\t\t\t\t <span class=\"voult-tooltip-box\">\n\t\t\t\t\t\t\t\t\t\t\t\t<div class=\"info-wrap\">\n\t\t\t\t\t\t\t\t\t\t\t\t<p class=\"fz-12\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t  <br>\t\t\t\t\t\t\t\t\t\t\t\t\tSource: Georgia MLS-GA | MLS#: 10714666<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t   <\/div>\n\t\t\t\t\t\t\t   <\/a>\n\t\t\t\t\t\t   <\/div>\n\t\t\t\t\t\t                        <div class=\"widgetPropColumnNew fullWidthCard \">\n\t\t\t\t\t\t<a href=\"https:\/\/www.houzeo.com\/homes-for-sale\" class=\"widgetanctextfind widgetancTextForAll\" target=\"_blank\">Homes for sale<span><img decoding=\"async\" src=\"https:\/\/houzeo-media-1.s3.amazonaws.com\/homes-for-sale\/blue-arrow.svg\" alt=\"arrow\" width=\"11\" height=\"10\"><\/span> \n\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/div>\n                   <\/div>   \n               \n                <\/div>\n            <\/div>\n        <\/div>\n    <\/div>\n       \n    <\/div>\n\t<script>\n    document.addEventListener(\"DOMContentLoaded\", function() {        \n        if (!window.assetsLoaded) {\n            window.assetsLoaded = true;\n            var version = (typeof customData !== 'undefined' && customData.customVersion) ? customData.customVersion : '1.0';\n            loadScript('\/blog\/wp-content\/themes\/houzeo-new-design\/js\/hfs-widget.js?version=' + version);\n            loadCSS('\/blog\/wp-content\/themes\/houzeo-new-design\/css\/hfs-widget.css?version=' + version);\n        }    \n    });\n\t\t\n\t<\/script>\n\t\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Interest-Rate\"><strong>What Is Interest Rate?<\/strong><\/h2>\n\n\n\n<p>An interest rate is a cost you pay for borrowing money, expressed as a percentage. It is the cost that a borrower pays the lender on top of the principal amount. <\/p>\n\n\n\n<p>The lender considers the borrower&#8217;s <a   href=\"https:\/\/www.houzeo.com\/blog\/what-credit-score-is-needed-to-buy-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">credit score<\/a> and <a   href=\"https:\/\/www.houzeo.com\/blog\/debt-to-income-ratio\/\" target=\"_blank\" rel=\"noreferrer noopener\">debt-to-income ratio<\/a> to set the interest rate. Other factors that impact the interest rate are the loan amount and loan span. <\/p>\n\n\n\n<p>Interest rates significantly affect a homebuyer&#8217;s ability to buy. Higher interest means higher <a   href=\"https:\/\/www.houzeo.com\/blog\/average-mortgage-payment\/\" target=\"_blank\" rel=\"noreferrer noopener\">monthly mortgage payments<\/a>, making home affordability difficult.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\"><strong>Find Homes for Sale Under Your Specific Budget<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-table alignwide\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-100k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$100K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-150k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$150K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-200k\"><strong>Homes For Sale under<br>$200K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-250k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$250K<\/strong><\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-300k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$300K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-350k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$350K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-400k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$400K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-450k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$450K<\/strong><\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-500k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$500K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-600k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$600K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-650k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$650K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-700k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$700K<\/strong><\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-800k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$800K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-850k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$850K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-900k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$900K<\/strong><\/a><\/td><td><a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\/homes-for-sale-under-950k\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>Homes For Sale under<br>$950K<\/strong><\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"APR\"><strong>What Is APR?<\/strong><\/h2>\n\n\n\n<p>APR refers to the total annual cost of borrowing. In other types of loans, APR usually includes the interest rates and origination fee. As for mortgages, APR contains the following costs:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Interest Rates<\/li>\n\n\n\n<li>Loan Origination fees<\/li>\n\n\n\n<li>Underwriting fees<\/li>\n\n\n\n<li>Mortgage Points<\/li>\n\n\n\n<li><a   href=\"https:\/\/www.houzeo.com\/blog\/mortgage-insurance\/\" target=\"_blank\" rel=\"noreferrer noopener\">Mortgage Insurance<\/a> Premiums<\/li>\n\n\n\n<li>Other <a   href=\"https:\/\/www.houzeo.com\/blog\/how-much-are-closing-costs\/\" target=\"_blank\" rel=\"noreferrer noopener\">Closing Costs<\/a><\/li>\n<\/ol>\n\n\n\n<p>Under the <a   href=\"https:\/\/finred.usalearning.gov\/assets\/downloads\/finred-truthlendingact-fs.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Truth in Lending Act<\/a>, lenders are to send an APR estimate to the borrower within 3 days of receiving a mortgage application. <\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"Interest-Rates-Calculated\"><strong>How Is Interest Calculated?<\/strong><\/h2>\n\n\n\n<p>Interest rates are determined based on the loan duration. Short-term loans are calculated using the simple-interest method. For larger duration loans the <a   href=\"https:\/\/www.houzeo.com\/blog\/mortgage-amortization\/\" target=\"_blank\" rel=\"noreferrer noopener\">amortization<\/a> schedule method is used. <\/p>\n\n\n\n<p><strong>The formula for calculating interest:<\/strong> <br>Principal Loan Amount <strong>x<\/strong> Interest Rate <strong>x<\/strong> Loan Term <strong>=<\/strong> Interest<\/p>\n\n\n\n<p><strong>Example:<\/strong> If a take out a 5-year loan for $60,000 with an interest rate of 5%, the interest would be: $60,000 <strong>x<\/strong> .05 <strong>x<\/strong> 5 <strong>=<\/strong> $15,000. <\/p>\n\n\n\n<p>For precise calculations of interest based on your loan term, use a <a   href=\"https:\/\/www.houzeo.com\/mortgage-calculator\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage calculator<\/a>. It gives you an accurate breakdown of interest costs over the loan duration, making it easier to understand your financial obligations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"APR-Calculated\"><strong>How Is APR Calculated?<\/strong><\/h2>\n\n\n\n<p>To calculate the APR on your mortgage, you will need the following details of the loan:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Principal Loan Amount<\/li>\n\n\n\n<li>Interest Rate<\/li>\n\n\n\n<li>All Other Costs<\/li>\n<\/ol>\n\n\n\n<p><strong>The formula for calculating the APR:<\/strong><br>APR<strong>=<\/strong> (Interest Costs<strong>+<\/strong>Other Costs) <strong>\/<\/strong> Principal <strong>\/<\/strong> n <strong>x<\/strong> 365 <strong>x<\/strong> 100<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\" id=\"bottom-line\"><strong>Bottom Line: APR vs Interest Rate<\/strong><\/h2>\n\n\n\n<p>The interest rate is the amount the lender charges a borrower as a lending cost. APR is the cost that includes interest and all other fees that you pay to the <a   href=\"https:\/\/www.houzeo.com\/blog\/how-to-choose-a-mortgage-lender\/\" target=\"_blank\" rel=\"noreferrer noopener\">lender<\/a>. <\/p>\n\n\n\n<p>As a home buyer, it&#8217;s important to ask your lender for the details of APR and interest rate. Make sure you compare both metrics from different lenders before you close on a <a   href=\"https:\/\/www.houzeo.com\/blog\/what-is-a-mortgage\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage<\/a>. <\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\"><strong>Find Your New Home With Houzeo<\/strong><\/h2>\n\n\n\n<p>With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of <a   href=\"https:\/\/www.houzeo.com\/homes-for-sale\" target=\"_blank\" rel=\"noreferrer noopener\">homes for sale<\/a> on Houzeo.<\/p>\n\n\n\n<p class=\"margin-top-15\"><strong>\u00bb NEED MORE CLARITY?&nbsp;<\/strong>Read these exclusive&nbsp;<a   href=\"https:\/\/www.realestatequeen.com\/houzeo-reviews\/\" target=\"_blank\" rel=\"noreferrer noopener\">Houzeo reviews<\/a>&nbsp;and learn why the platform is the best in America\u2019s competitive housing market.<\/p>\n\n\n\n<h2 class=\"wp-block-heading margin-top-28\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhat does APR stand for?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p><a href=\"#APR\">APR<\/a> stands for Annual Percentage Rate. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhy is my APR higher than the interest rate?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>APR is higher than the interest rate because it includes the interest on the loan, origination fee, <a href=\"https:\/\/www.houzeo.com\/blog\/mortgage-points\/\" target=\"_blank\">mortgage points<\/a>, etc. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tDoes 0% APR mean no interest?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Yes, 0% APR means that there is no <a href=\"https:\/\/www.houzeo.com\/blog\/principal-and-interest\/\" target=\"_blank\">interest<\/a> charged on that particular transaction. Usually 0% APR is offered for a limited period as a part of lender's promotional scheme. <\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">Discover the differences between APR and interest rate and their impact on borrowing costs. Make informed financial decisions with a clear understanding of these...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">4 mins read<\/span><span class=\"date\">Apr 09, 2026<\/span><\/div>","protected":false},"author":102,"featured_media":426327,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46225,46242],"tags":[34899,34898,34895,34897,23754,23746,23745,34896],"class_list":["post-330687","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buyer","category-mortgage","tag-annual-interest-rate","tag-apr-definition","tag-apr-meaning","tag-apr-rate","tag-difference-between-interest-rate-and-apr","tag-interest-rate-vs-apr","tag-interest-vs-apr","tag-what-does-apr-stand-for"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>APR vs Interest Rate: What Is the Difference?<\/title>\n<meta name=\"description\" content=\"Discover the differences between APR vs interest rate. 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