" " When financing a home, the APR is a more important number than the advertised interest rate. Weekend Images Inc./Getty ImagesIf you've ever gone shopping for a home mortgage or refinance you've probably seen an interest rate advertised as, for instance, "Rate: 2.65%; APR: 2.7%." The annual percentage rate (APR) represents the average annual finance charge you'll be paying on the loan when including all the fees and costs associated with getting that loan. The APR is usually higher than the interest rate. The original interest rate was 5 percent, meaning an annual interest payment of $10,000.