What is the difference between APR and Mortgage Rate?

Both the terms come at the time when you get a mortgage .So understand both the terms APR and Mortgage Rate is important.
APR stands for Annual Percentage Rate and it will help you in finding the true cost of the loan. APR describes the interest rate for the whole year . APR can be applied on various things such as loan, mortgage and credit card. APR is mainly two types .

One is Nominal APR and another is Effective APR . Nominal APR is the simple interest and it is calculated on the mathematical concept used for simple interest. Effective APR is calculated on the mathematical concept used for compound interest.

Mortgage rate is the interest which accrues on the mortgage.You can also call it Interest rate.

Types of Interest rate.

Variable interest rates:It is the interest rate which changes at set of intervals based upon some financial index .

Fixed Interest rate:It is the interest rate which is fixed until closing of the loan