We get this all the time. Your annual percentage rate (APR) is the total yearly cost of your mortgage expressed as a percentage. APR gives you a bigger picture of what it costs to finance your loan by accounting for the interest rate and finance charges. What’s great about it is that, by comparing APRs from different lenders, you can get an idea of the true cost to borrow. And, it prevents lenders from advertising a low rate while hiding fees.