Glossary
APR (Annual Percentage Rate)
The total annualized cost of borrowing, including interest and most prepaid finance charges, expressed as a percentage of the loan amount.
APR is required disclosure under TILA. It exceeds the note rate when the loan carries fees (origination, discount points, lender-paid mortgage insurance, certain third-party closing costs).
APR computation in production uses the actuarial method on the disclosed fee set. RateStack's calculator at /resources/calculators/apr applies a standard fee set; for binding APR, use your LOS's Loan Estimate generator.