APR Vs. Interest Rate

Posted by bmedia on Monday, February 3, 2020

Stonebridge Mortgage_APR vs Interest Rate_0220

When it comes to buying a house, the numbers aren’t always straight forward. Purchasing a house is a costly expense that comes with lots of fees and nuances. Stonebridge Mortgage Group is here to help Portland locals understand all of the ins and outs of buying a home. We’re eager to help all Portland locals in need make the best decision when shopping for a home.

APR vs. Interest Rate

If you’ve been looking into buying a home in Portland, you’ve likely heard both of these terms. Some home buyers get the two confused, but it is important that Portland locals understand that your APR, or annual percentage rate, and interest rate are not the same thing. Both APR and interest rates are tools to help you comparison shop as well as determine the affordability of the loan. However, they are not the same thing.

Interest Rates

Put simply, an interest rate is the cost of borrowing the principal loan amount for your home. Interest rates are always expressed as a percentage, and they can be variable or fixed. The interest rate and principle balance together are what your monthly payment will be based off of. Your credit score will determine your interest rate. It is best to have a high credit score in order to secure a low-interest rate.


APR, on the other hand, is a broader measure of the cost of a mortgage. It includes the interest rate as well as additional costs such as broker fees, discount points and some closing costs, expressed as a percentage. While the interest rate is determined by your credit score APR will be determined by the lender because it is composed of lender fees and other costs that vary from lender to lender.

Portland Locals Can Rely On Stonebridge Mortgage Group

Still having trouble understanding the difference between interest rates and APR? Have other questions related to buying a home in Portland? Don’t hesitate to ask Stonebridge Mortgage Group. We offer a wide range of mortgage-related services and are eager to answer any questions you have. What services does Stonebridge Mortgage Group offer?

Preapproval Services

Get pre-approved before you look into shopping for a house and know exactly how much home you can afford and what you qualify for. Click to learn about our preappoval services.

Reverse Mortgage

Wanting to know if a reverse mortgage is the right choice for you? Allow us to clear up any misconceptions you have and give professional advice. Click to learn more about reverse mortgage services.

Real Estate Loan

Stonebridge Mortgage Group is eager to secure the real estate loan in Portland that is right for you! Click to learn more about our real estate loan services.

Loan Officer

Our loan officers strive to make our clients feel confident and well informed. Click to learn more about loan officers at Stonebridge Mortgage Group.

Mortgage Broker

Our mortgage brokers are ready to advocate on your behalf and make sure you understand each step of the home buying process. Click to learn more about mortgage broker services with Stonebridge Mortgage Group.

Stonebridge Mortgage Group offers the best mortgage-related services!

Stonebridge Mortgage Group Offers Guidance On All Mortgage Matters

For professional assistance with mortgages and related services, look no further than Stonebridge Mortgage Group. You can rely on Stonebridge Mortgage Group to help guide you through the home buying process. We help get you pre-approved for a mortgage and help with your real estate loans and other mortgage solutions, both residential and commercial. Stonebridge Mortgage Group serves the greater Portland area and is located in Gresham, Oregon. Don’t wait to get quality assistance with buying your home! Call Stonebridge Mortgage Group today at 503-661-5580.

Categories: Annual Percentage Rate (APR), interest rates, mortgages

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