Finance
The 'annual percentage rate' (APR) on a Connecticut mortgage is HIGHER than the stated note rate because it includes:
AOnly the base interest
BThe interest rate plus the cost of fees, points, and other finance charges spread over the loan term✓ Correct
CHomeowners insurance costs
DProperty tax obligations
Explanation
The APR reflects the total cost of credit annually—incorporating the interest rate plus points, origination fees, and other finance charges—making it higher than the simple note rate and useful for comparing loan offers.
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