APR

APR stands for Annual Percentage Rate — the yearly cost of borrowing money, expressed as a percentage. Unlike the bare interest rate, APR folds in lender fees, so it's the truest apples-to-apples way to compare loans. When you shop for a mortgage or credit card, compare APRs, not just the advertised rate.

Example: A $300,000 mortgage advertised at 6.5% interest might carry a 6.72% APR once origination fees are folded in — that gap is the fees talking.