---
title: What is APR?
description: The Annual Percentage Rate (APR) is the true cost of a home loan. APR is a recalculation of an effective mortgage interest rate including closing costs.
---

[Skip to content](https://info.jvmlending.com/knowledge/what-is-apr#main-content)

English

Show submenu for translations

![jvm\_logo\_small.png\]](https://info.jvmlending.com/hs-fs/hubfs/Logos/jvm_logo_small.png?height=40&name=jvm_logo_small.png)

Open main navigation

Close main navigation

- English
  
  Show submenu for translations
- [Go to jvmlending.com](https://www.jvmlending.com/)

[Go to jvmlending.com](https://www.jvmlending.com/)

 Welcome! How can we help you?

- There are no suggestions because the search field is empty.

1. [Knowledge Base](https://info.jvmlending.com/knowledge?hsLang=en)
2. [FAQs](https://info.jvmlending.com/knowledge/faqs?hsLang=en)
3. [Mortgage Interest Rates](https://info.jvmlending.com/knowledge/faqs?hsLang=en#mortgage-interest-rates)

# What is APR?

## The true cost of a home loan.

The Annual Percentage Rate (APR) is the truest cost of a home loan**. The APR is a recalculation of a borrower’s effective mortgage interest rate that includes closing costs, as well as the interest borrowers will pay on the loan.** These closing costs can include origination fees, points, escrow fees, and mortgage insurance.

**The APR may be somewhat misleading on loans that require large mortgage insurance premiums, like FHA loans.** APR quotes are required, however, to prevent lenders from quoting artificially low interest rates to attract business and then charging substantial fees to cover the cost of the low rates. **Per the Truth in Lending Act, all mortgage lenders must disclose their APR.**

- [FAQs](https://info.jvmlending.com/knowledge/faqs?hsLang=en#main-content)

    - [Closing](https://info.jvmlending.com/knowledge/faqs?hsLang=en#closing)
    - [Getting Pre-Approved](https://info.jvmlending.com/knowledge/faqs?hsLang=en#getting-pre-approved)
    - [Post-Close](https://info.jvmlending.com/knowledge/faqs?hsLang=en#post-close)
    - [Making Offers](https://info.jvmlending.com/knowledge/faqs?hsLang=en#making-offers)
    - [Loan Products](https://info.jvmlending.com/knowledge/faqs?hsLang=en#loan-products)
    - [Mortgage Interest Rates](https://info.jvmlending.com/knowledge/faqs?hsLang=en#mortgage-interest-rates)

[![Chill listening crop-3](https://info.jvmlending.com/hs-fs/hubfs/Logos/jvm_logo_small.png?width=72&height=36&name=jvm_logo_small.png "Chill listening crop-3")](https://www.jvmlending.com/)

JVM Lending | Knowledge Base

Copyright © 2026, JVM Lending