Total interest percentage

APR is a yearly cost measure that includes certain fees. TIP answers a different question: how much interest, as a share of the loan amount, the borrower would pay over the scheduled life of the loan. The two figures sit on the same disclosure family and are easy to mix up.

CFPB’s key-terms heading defines TIP as a disclosure of interest paid over the life of the mortgage. That official heading is PRIMARY. The Loan Estimate regulation is supporting context.

Shoppers compare APR and TIP as if they were the same rate. They are different official measures.

• Annual Percentage Rate

• Interest