The Annual Percentage Rate (APR) is the actual yearly interest rate paid by the borrower, taking into account the points charged to initiate the loan and other costs. Typically, the APR is about 0.5 % higher than the note rate. The real cost of borrowing is disclosed by considering the assumption that the points will be paid off over the duration of the loan and by adding in the points. The relative cost of credit as decided by the Regulation Z of the Board of Governors of the Federal Reserve System for implementing the federal Truth-in Lending Act. The APR takes into consideration several components. It is important to understand the APR of the loan you are taking out to buy your Northeast Fl real estate.