For home equity lines, the APR is just the interest rate. Interest Rate The cost a customer pays to a lender for borrowing funds over a period of time expressed as a percentage rate of the loan amount. On October 21st, 2019, the average rate on the 30-year fixed-rate mortgage is 4.08%, the average rate for the 15-year fixed-rate mortgage is 3.59%, and the average rate on the 5/1 adjustable-rate mortgage (ARM) is 4.25%. Rates are quoted as Annual Percentage Rate (APR). The term points is used to describe certain charges paid to obtain a home mortgage. Points are prepaid interest and may be deductible as home mortgage interest, if you itemize deductions on Schedule A (Form 1040 or 1040-SR), Itemized Deductions (PDF).If you can deduct all of the interest on your mortgage, you may be able to deduct all of the points paid on the mortgage.