When you shop around for a home mortgage, comparing various lenders, one of the things you look for is APR. This is the annual percentage rate. And while it can be helpful, remember that it doesn’t always tell the whole story. Rob K. Blake at the Mortgage Insider points this out:

The Annual Percentage Rate (APR) is a yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by the Federal Truth in Lending law to disclose the APR. In a nutshell, certain costs on the loan are added into the rate.

It’s true! The APR alone will not help you figure out which home mortgage loan is actually the best deal for your money. You also need to ask about closing costs, fees and other expenses that can be tacked on to your mortgage loan. The APR is only the beginning. Make sure you find out for sure what other costs will be added to your mortgage loan rate to try to get a clearer picture.