In mortgage terminology, APR is the cost of credit to the borrower, expressed as a yearly rate. The APR includes the interest rate, points, broker fees, and mortgage insurance that the borrower is required to pay. However, APR doesn't necessarily include all of the fees and costs of a mortgage loan. For example, an appraisal fee or a loan application fee are not usually included in the APR. Because of the extra costs included, the APR is a higher interest rate than the simple interest rate the borrower is quoted on the mortgage. Use the APR to compare loans, but make sure to include other costs you are quoted, too.