Finance
The annual percentage rate (APR) on a mortgage is typically higher than the stated interest rate because it includes:
AProperty taxes and insurance
BCertain fees and charges in addition to interest✓ Correct
CThe broker's commission
DPMI premiums only
Explanation
The APR reflects the true cost of the loan by including the interest rate plus certain fees such as origination fees, discount points, and mortgage insurance, making it higher than the stated interest rate.
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