Finance
APR (Annual Percentage Rate)
A concise definition for the California Real Estate Exam study guide.
Definition
A federal disclosure under TILA expressing the total cost of credit as a yearly rate, including interest and certain financing costs. APR is typically higher than the note rate.
Why it matters on the California real estate exam
Know the definition, recognize how the term appears in a fact pattern, and compare it with related concepts before choosing an answer.
Study this topic in context
Read the related chapter for the surrounding concepts, examples, and exam tips.
Chapter 5: Finance, Mortgages & Loan Types →