When searching for rates, you'll probably see two percentages pop up: interest rate percentage and annual percentage rate (APR). The interest rate is the rate the lender charges you for taking out a mortgage. The APR shows you the full cost of borrowing, not just the interest rate. A mortgage's APR takes into account things like points and fees paid to the lender in addition to your interest rate.  The APR gives you a better idea of how much you'll actually pay to get a mortgage.