Annual Percentage Rate

The annual percentage rate (APR) is the total annual cost of your mortgage loan. It includes the interest rate – the fee to borrow money calculated as a percentage of the amount borrowed -plus loan fees, points and any other charges. Required by the Truth-in-Lending Act, the APR allows you to effectively compare the mortgage rates of different loan programs.


Points are determined as a percentage of your loan amount, paid at closing. For instance, on a $90,000 loan amount, 1 point = 1 % or $900. You may have the option to pay points to buy down (reduce) your interest rate. Alternatively, the lender may pay points to offset your closing costs in exchange for a higher rate. These are called negative points.

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With a wide variety of home loan products to choose from, we’ll help you find the one that’s right for you. An experienced Century 21 MortgageĀ® Consultant is ready to answer your questions and get your home financing started.

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