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Annual Percentage Rate (APR)

Make an informed choice

The cost to borrow money expressed as a yearly percentage, the APR helps you compare loan prices.
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APR — a basic outline

Many things can affect the cost of a loan. For mortgage loans, the annual percentage rate typically includes the interest rate plus other charges or fees, such as mortgage insurance, discount points, and origination fees.

  • Interest rate. Cost you pay to a lender for borrowing funds. Expressed as a percentage of the loan amount.
  • Origination charges. Amount that includes all charges (other than discount points) the lender receives for originating the loan, including miscellaneous fees like prepaid interest.
  • Discount points. What a buyer or seller pays at closing to reduce the interest rate on the mortgage. Ask your mortgage consultant for more information about discount points.
  • Mortgage insurance. Usually required if you put less than 20% down.

How mortgage insurance works

What is APR?

Video - What is APR?

We break down the components that make up the annual percentage rate.

Watch video

Choosing the right lender

The mortgage lender you choose is just as important as a low APR. We're here for you with years of experience and a full range of banking services. Plus, you get ongoing support because we continue to service most of the loans we close.

 Did you know? 

Wells Fargo is the nation's leading residential mortgage lender. Our home mortgage consultants have the experience to help you find the loan that's right for you. Learn more