Finance
Under the Truth in Lending Act (TILA), the annual percentage rate (APR) disclosed to a Connecticut borrower includes:
AOnly the interest rate on the note
BThe interest rate plus the cost of points, mortgage insurance, and certain fees, expressed as an annual rate✓ Correct
CThe lender's profit margin
DThe estimated property tax rate
Explanation
The APR under TILA includes the interest rate plus certain fees and costs (points, mortgage insurance premiums, origination fees) expressed as an annual rate. APR is typically higher than the note rate and allows borrowers to compare loan costs across lenders.
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