What is the difference between the interest rate and the annual percentage rate (APR)?

What is the difference between the interest rate and the annual percentage rate (APR)?

The interest rate is the rate you agree to pay on your mortgage loan and determines the interest portion of your monthly payment. The annual percentage rate (APR) includes your interest rate and prepaid finance charges to give you an average yearly rate.

2018-02-12T07:09:41+00:00