Why is APR often higher than the mortgage interest rate?
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The interest rate describes the borrowing charge on principal. APR is a broader measure that also incorporates certain loan costs, such as points and fees. That is why the two percentages can differ. Compare like-for-like loan terms; APR alone does not tell you every risk or predict the highest possible rate on an adjustable-rate loan.
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Discussion prompt: Are the loans you are comparing the same type and term?