APR stands for annual percentage rate. There are 2 rates that lenders needs to disclose. The true rate and APR rate. The APR rate is when lenders will convert any costs associated with the origination of the mortgage loan. For example, if one lender discloses $2,000 on a $200,000 loan and another lender discloses,$5,000 and both lenders have 4.0% actual rate, the lender who disclosed the $5,000 closing costs will have higher APR. APR rate can be lower than true rate. Disclosing APR is mandatory. Regulators created this law so consumers can shop for rates.