Which Is A Better Indicator? APR or Interest Rate? What’s The Difference?

If you’re a first-time homebuyer you might have noticed mortgage rates expressed a couple of different ways in the charts when you google for current rates. You may have seen it expressed a number of ways including APR and Interest Rate. So, what’s the difference and which one should you go by?

What Is The Interest Rate

The interest rate on a mortgage is simply the cost that a borrower will pay to the bank or lending institution for borrowing money to buy the home over a period of time. This figure doesn’t include any other gees like brokerage fees, discount points, private mortgage insurance, or your closing costs. This isn’t the best indicator of real-life costs for your mortgage.

What Is The APR

APR, or annual percentage rate, is a better option for determining how much you can actually afford. This is the actual cost to borrow money for the purchase of your home expressed as a yearly percentage rate. With a mortgage, the APR shows the interest rate plus your broker fees, plus discount points, plus PMI, and plus some closing costs. The APR is a much more accurate figure for indicating your true borrowing costs when you purchase a home with a mortgage than current interest rates alone.

205 S. BEACH Drive
$4,799,000
  • 4 Bedrooms
  • 5 Bathrooms
  • 8,910 Sq Ft
  • 0.260 Acres

205 S. BEACH Drive MARCO ISLAND, Florida

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866 HYACINTH Court
$4,295,000
  • 4 Bedrooms
  • 8 Bathrooms
  • 7,995 Sq Ft
  • 0.250 Acres

866 HYACINTH Court MARCO ISLAND, Florida

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800 W COPELAND Drive
$3,875,000
  • 6 Bedrooms
  • 8 Bathrooms
  • 8,658 Sq Ft
  • 0.500 Acres

800 W COPELAND Drive MARCO ISLAND, Florida

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355 GUMBO LIMBO Lane
$2,350,000
  • 5 Bedrooms
  • 5 Bathrooms
  • 7,099 Sq Ft
  • 0.380 Acres

355 GUMBO LIMBO Lane MARCO ISLAND, Florida

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833 MAGNOLIA Court
$2,100,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 2,755 Sq Ft
  • 0.200 Acres

833 MAGNOLIA Court MARCO ISLAND, Florida

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960 CAPE MARCO Drive 1101
$2,050,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 3,447 Sq Ft

960 CAPE MARCO Drive 1101 MARCO ISLAND, Florida

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2000 ROYAL MARCO Way 15
$1,950,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 3,099 Sq Ft

2000 ROYAL MARCO Way 15 MARCO ISLAND, Florida

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4000 ROYAL MARCO Way 623
$1,650,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 3,847 Sq Ft

4000 ROYAL MARCO Way 623 MARCO ISLAND, Florida

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1069 BALD EAGLE Drive 1002
$949,000
  • 3 Bedrooms
  • 2 Bathrooms
  • 2,635 Sq Ft

1069 BALD EAGLE Drive 1002 MARCO ISLAND, Florida

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3000 ROYAL MARCO Way 321
$695,000
  • 3 Bedrooms
  • 3 Bathrooms
  • 3,043 Sq Ft

3000 ROYAL MARCO Way 321 MARCO ISLAND, Florida

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992 ROYAL MARCO Way 0
$5,700,000
  • 0 Bedrooms
  • 0 Sq Ft
  • 0.450 Acres

992 ROYAL MARCO Way 0 MARCO ISLAND, Florida

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395 WILD COFFEE Lane 0
$449,000
  • 0 Bedrooms
  • 0 Sq Ft
  • 0.340 Acres

395 WILD COFFEE Lane 0 MARCO ISLAND, Florida

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Are You Buying a Home on Marco Island?

Considering buying a home on Marco Island? We’d love to help you find one that’s just right for your needs.

First, check out available Marco Island area properties using this helpful search tool. If it’s easier, you can just call us at 239-821-7926 or get in touch with us online to let us know what you’re looking for. We’re happy to contact you however you prefer. Then, we’ll start searching our databases right away using criteria you specify!

In the meantime, you can also easily explore Marco Island real estate by price:

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