The two sound almost identical. Your mortgage rate is just that: the interest rate on your mortgage. Your APR (Annual Percentage Rate) is how much you’re actually paying in interest each year. Knowing the difference between the two is crucial. Confused? Don’t be. Just read this article by Jeanna Nagle at Lending Tree for more information:
Many people assume that the loan with the lowest APR automatically gives them the most bang for their buck. Yet sometimes calculating the APR vs. interest rate is the only way to truly reveal what the best deal is. Low APR is great, provided the mortgage is paid off over the course of its entire term.