The APR is the cost of credit expressed as a yearly rate. The APR includes the interest rate, points, broker fees and certain other credit charges that the borrower is required to pay. It is calculated in a standardized way that takes fees into account, making it easier to compare loans. It is considered the true rate of interest because it includes all of those charges. Unfortunately, in mortgages, the APR is of limited value, because by law lenders can omit some fees, rendering meaningful comparisons difficult.