You're looking at a loan estimate for the house you want. There are two different rates. You aren't being charged both. We can walk through what each one tells you.
The interest rate helps determine principal and interest. APR puts certain borrowing costs into a comparison figure. Neither gives you the whole cost of owning the home. Insurance and association dues still belong in the budget. So do expenses that never appear on a loan estimate.
Before we settle on a shopping range, we check the cash you'd need as well as the quoted rate. An attractive quote may require more upfront money than you want to use. If you might move or pay off the loan early, we compare costs over that period too. A lower APR doesn't automatically mean a cheaper loan by the time you sell.
In escrow, we compare estimates with the same expected closing date and equivalent loan assumptions. Otherwise, a difference in the paperwork can look like a better deal. Before changing financing, we check whether it would affect the purchase schedule.
How to Compare Two Homes Without Getting Lost in the Details covers the property decision. When we put a budget beside each house, we want you to understand what it includes. You can ask us to slow down and explain a number before you decide what feels comfortable.