Whats the difference between the “Rate” and the “APR” on a loan?

I thought they were the same thing but I heard a Radio ad about a mortgage loan that advertised a 5.5% rate and a 5.95% APR??????
What gives?

The broker says my rate will be around 6.5% but they have to state APR 7.5% because it has to includes Mortgage insurance because of not putting 20% down. Is this correct? I understand I have to pay the PMI but should my APR be around the 7%? The loan is around $ 400K 3% down.

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