# APR

> The annual percentage rate: the yearly cost of a loan including the interest rate and some of the fees, as a single percentage. It's usually a little higher than the interest rate.

By David Knorr, founder of BuyWise Home. Last reviewed October 28, 2026. Web page: https://www.buywisehome.com/guide/glossary/apr

## Why it matters to you

Two loans with the same rate can cost different amounts once fees are counted. Comparing APRs on your [Loan Estimates](https://www.buywisehome.com/guide/glossary/loan-estimate) shows which loan costs more overall.

## Related

- [Step 2: Get pre-approved](https://www.buywisehome.com/guide/get-pre-approved)
- [Loan Estimate](https://www.buywisehome.com/guide/glossary/loan-estimate): A standard form every lender gives you, so you can compare loans side by side.
- [Discount points](https://www.buywisehome.com/guide/glossary/discount-points): Money paid up front to lower your interest rate. One point is 1% of the loan.
- [Rate lock](https://www.buywisehome.com/guide/glossary/rate-lock): A lender's promise to hold your rate for a set time while your loan is processed.

_General information based on the standard Georgia REALTORS® purchase contract and public guidance. Your own contract decides: read it, and ask your agent or closing attorney about anything that matters. Not legal or financial advice._