Finance
What is the difference between 'interest rate' and 'annual percentage rate' (APR) on an Idaho mortgage?
AThey are always the same number
BThe interest rate is the cost of borrowing principal; APR includes the interest rate plus fees, points, and other costs, expressed as an annual rate✓ Correct
CAPR is only disclosed on adjustable rate mortgages
DThe interest rate is always lower than APR by exactly 0.5%
Explanation
The interest rate is the rate charged on the principal balance. APR is a broader measure that includes the interest rate plus points, fees, and other charges, making it easier to compare loan costs between lenders.
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