Finance
The annual percentage rate (APR) on a mortgage loan is:
AAlways equal to the stated interest rate
BThe true cost of the loan including fees and points expressed as a yearly rate✓ Correct
CThe rate charged only during the first year
DSet by the Federal Reserve
Explanation
APR reflects the true annual cost of borrowing, including the interest rate plus fees, points, and other costs. It is always equal to or higher than the stated rate.
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