What's the difference between "rate" and "APR" on a home mortgage?

[vi edit]

linky

Basically, they are listing the "rate" at 6.5%, and the "APR" at 6.608%. What's the difference?

 

[Ornery]

The APR, by law, must include closing costs, which is added to the interest paid over the life of the loan. When these fees are added to the "rate", the total is the APR.

 

[b0mbrman]

APR = Rate + mortgage insurance + origination fee

 

[EagleKeeper]

Rate is just an abreviation for the interest rate of the loan.

APR may be the total cost divided by the load duration, however, I thing that it is used as the same as the interest rate. Annual Percentage Rate