Definition: Annual percentage rate (APR) The annual cost of a loan, expressed as a yearly rate. APR takes into account interest, discount points, lender fees and mortgage insurance, so it will be slightly higher than the interest rate on the loan. More Questions on Mintrates: What is Negative Amortization? What is Net? What is Net effective income? What is Net Worth? What is No Income Verification? What is No Ratio Loan?