(1*) Annual Percentage Rate (APR) is a term used in the Truth-In-Lending Act to represent the percentage relationship of the total finance charge to the amount of the loan. The APR reflects the cost of your mortgage loan as a yearly rate. It will be higher than the interest rate stated on the note because it includes, in addition to the interest rate, any loan discount points and other prepaid finance charges. (2*) Assumes 20% down payment or 80% loan-to-value (LTV): no mortgage insurance. Lower down payment loans are available up to 95% LTV.