Florida MortgagesFlorida Home LoansFlorida Interest RatesFlorida Mortgage Loans

Home PageMortgage CalculatorAsk Us a QuestionEmail 1st Residential FundingSearch the 1st Residential Web Site

What Is APR


Get a Free Estimate
Apply Now

Ask a Question

Latest Rates

About Us

What Is the Annual Percentage Rate?
The Annual Percentage Rate (A.P.R.) is the cost of your credit expressed as an annual rate.  Because you may be paying loan discount "points" and other "prepaid" finance charges at closing, the A.P.R. disclosed is often higher than the interest rate on your loan.  This A.P.R. can be compared to the A.P.R. on other loan programs to give you a consistent means of comparing rates and programs.

Why is the Annual Percentage Rate different from the Interest rate for which I applied?
The A.P.R. is computed from the amount financed and is based on what your proposed payments will be on the actual loan amount credited to you at settlement.  In a $50,000 loan with $2,000 Prepaid Finance Charges, a 30 year term, and a fixed interest rate of 12%, the payments would be $514.31(principal and interest).  Since the A.P.R. is based on the Amount Financed ($48,000), while the payment is based on the actual loan amount given ($50,000), the A.P.R. (12.553%) is higher than the interest rate.



1st Residential Funding

1755 W. Broadway St.
Suite 2
Oviedo, FL 32765

(407) 977-5656
(888) 854-RATE
Fax: (407) 977-7727

Southeast Web Group | Online Computer Repair | Important Disclosures | Privacy Policy | NMLS# 372836