The Annual Percentage Rate is the true rate of interest you are paying on a loan.

Many attorneys do not know what an APR represents but you are about to find out what it means to you.

The APR is the total cost of credit to you and is intended to make it easier to compare lenders and loan options.

The APR is usually different than the "note rate" due to the addition of other fees that are not included in the note but are part of the loan.

The Truth in Lending Act governs the calculation of the APR and the disclosure of the APR to the borrower.

The following fees are generally part of the APR:

1. Appraisal Review Fee.
2. Broker Fee/Yield Spread Premium.
3. Document Drawing Fee.
4. Origination Points.
5. Processing Fee.
6. Underwriting Fee.

The following fees are generally nor part of the APR:

1. Appraisal Report Fee.
2. Attorney Fee.
3. Credit Report.
4. Escrow Fees.
5. Home Inspection Fees.
6. Recording Fees.
7. Title Fees.