Annual percentage rate (APR)
The annual percentage rate (APR) is the overall yearly cost of a loan, counting the interest rate plus the loan's other costs. Comparing it with the quoted interest rate shows how much the fees add.
New Jersey example
Say a lender quotes a made-up 6.50% interest rate on a Cherry Hill home loan, but the APR is 7.40%. That 0.90 point gap falls in the .75 to 1 point range that New Jersey's banking department calls a sign that significant fees are being added, so it's worth asking what each fee is for.
Official source
Everything You Wanted to Know About Buying a Home (NJ Department of Banking and Insurance)
This is a plain-English summary. Rules and dollar amounts change, so check the official source or a professional before you file or sign anything.