What is it? The Annual Percentage Rate (APR) is your mortgage rate plus all other costs that you must pay to your lender. This can include discount points, private mortgage insurance, and other fees. It is a more comprehensive measurement of how much your loan will cost you in the long run. Is it always the best measure?

No, it is not. Time will have to play a big part in whether or not you shop by comparing APR's. If you plan on paying for discount points to lower your APR but move out of your house within five to ten years, you've lost the money. Borrowers who are mostly concerned with lowering their monthly payments should pay more attention to their interest rate.