Is the annual percentage rate usually lower than the actual interest rate on the loan?
The actual interest rate on a mortgage will always be higher
than the annual percentage rate unless the borrower keeps the loan
for the full term. Refinancing or selling before the end of the
term results in a much higher actual (effective) interest rate. The
effective rate on a mortgage can be lower than the annual
percentage rate (fixed rate) by paying extra to principal
especially early in the mortgage term.