APR vs. Interest Rate: What's the Difference?

U.S. News explains why the interest rate and the APR are not the same number, and how each one should shape the way you shop for a mortgage. Ryan Cicchelli of Generations Insurance & Financial Services breaks down what actually sets a rate, how principal and interest shift over the life of a loan to build home equity, and why the lender with the higher advertised rate can still cost less over time — plus when to prioritize the lowest monthly payment versus the lowest total loan cost.