What is a mortgage?
A. A mortgage is a loan provided from a mortgage lender to purchase a property.
What is the difference between the interest rate and the annual percentage rate (APR)?
A. Interest rate is the contractual rate that you agree to pay for your mortgage loan. This rate is used to calculate the interest portion of your monthly mortgage payment. Annual percentage rate (APR) includes your interest rate and factors in the prepaid finance charges to give you an average yearly rate. APR can be a good tool to use when you’re comparison shopping for rates.