While you may have an interest rate of 5%, for example, your total APR could be 5.25%. That total means you’re paying an additional quarter percentage point in fees.The interest rate is the price you pay to borrow money, usually calculated as a percentage of the amount you are borrowing. Many people are quoted an annual percentage rate (APR) when applying for a loan. APR factors in other fees that make up your payment.For example, if you borrow $150,000 with strong credit at an 8% APR for five years, your m ...