The interest rate is the cost of borrowing money expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. An Annual Percentage Rate (APR) is a broader measure of cost to you of borrowing money. The APR reflects not only the interest rate but also the points, origination fees, and certain other charges that you have to pay to get the loan, including certain portions of your closing costs. For that reason, your APR is usually higher than your interest rate.