APR on a fixed rate loan is ALWAYS higher than your note rate of interest.
A few major items affect APR:
1. Note rate - the actual rate your payments are calculated on.
2. Closing costs - some affect APR, some don't. Ask your lender for details.
3. Mortgage insurance. MI is factored into the APR calculation. With a 5% downpayment, MI is generally about .75%. But, it doesn't last all 30 years, more like 12 (based on standard amortization). So that could easily add maybe .4-.5% to your APR.
I wouldn't get too bent out of shape about APR. If your note rate is good, terms are otherwise favorable, it really doesn't mean that much to you.
Closing at the end of the month vs. the beginning will lower your APR. Which is silly, but true. Point is, it's not necessarily the most important part of your overall offer.
10 years in mortgage banking