Finance
The annual percentage rate (APR) on a mortgage loan in Indiana represents:
AOnly the interest rate charged by the lender
BThe true cost of borrowing, including the interest rate and other financing charges, expressed as an annual rate✓ Correct
CThe maximum interest rate permitted by Indiana usury law
DThe rate used to calculate monthly payments only
Explanation
APR includes not just the nominal interest rate but also points, mortgage broker fees, and other charges associated with the loan, expressed as a yearly rate. TILA requires lenders to disclose APR so borrowers can compare loan costs.
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