CityPro Financial.  All rights reserved  2006. info@cityprofinancial.com
CityPro Financial 21224 Ventura Blvd Woodland Hills, CA 91364 • (818) 340-5900 Phone • (818) 340-5916 Fax
Equal Housing Lenders. 2008 Crobal Corp, d.b.a. CityPro Financial. All CityPro Logos and  marks are the property of Crobal Corp, Some products       
may not be available in all states. This is not a commitment to lend. All applicants must meet lender guidelines. Credit and incomes will be    
reviewed. Restrictions apply. All rights reserved.
DRE License # 01845977.  
What is Annual Percentage Rate (APR)?

A.P.R. was designed for borrowers to use one standardized number to compare the cost of their
financing.
Following fees are required to show as an APR item and will affect the APR.:

  • Origination and/or discount points
  • Lender fees (underwriting, doc prepare, etc.)
  • Pre paid interest charged
  • Mortgage insurance premiums, monthly and/or upfront if any

For example:

If you borrowed $100,000 and was charged a $5000 in closing fees, you will
actually receive only $95,000, however you must still repay the lender $100,000.
APR  is the lender’s yield and your real cost on this loan.
The note will show that you will repay the loan at 8% interest on $100,000, but you
only received $95,000 therefore the lender will earn more than the 8.0% interest
rate the lender charged on $100,000. The lender’s yield (A.P.R.) is 9.799% on
the $95,000 you received.
The A.P.R. is the lender's yield on money lent ($100,000 minus $5,000 = $95,000). This example
shows the lender's yield (A.P.R.) on $95,000 is 9.799% (A.P.R is computed on a  30 year amortized
term)
The $95,000 also will show as the Amount Financed section in the Truth In Lending (TIL) disclosure.