Finance
In Louisiana, the 'note rate' on a mortgage differs from the 'APR' in that the APR:
AIs always higher than the note rate
BIncludes the note rate plus fees and other costs, expressed as an annual rate — providing a more complete picture of the loan's true cost✓ Correct
CIs set by the Federal Reserve
DOnly applies to adjustable rate mortgages
Explanation
The APR (Annual Percentage Rate) includes the interest rate (note rate) plus other loan costs — origination fees, discount points, mortgage insurance — spread over the loan term. The APR is always the same as or higher than the note rate and provides a better cost comparison tool.
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