APR stands for Annual Percentage Rate. This number includes some of the various costs of obtaining a mortgage loan and converts them into a single value in order to help you comparison shop for your loan. However, it is a misunderstood and often misleading number and can actually cause more confusion than it alleviates. Due to what is a rather flawed calculation, many ARMs have APRs far less than their actual contract interest rates, when it should be the other way around.
FRM and ARM are simple -- Fixed Rate Mortgage (FRM) and Adjustable Rate Mortgage (ARM) -- two basic types of mortgages. FRMs have interest rates which never change, while ARMs have rates that can change anywhere from one time over a 30-year term to more than 360 times.
To learn more about the acronyms and terms used in real estate and mortgage market, check out HSH's Glossary of Mortgage Terms.
