Finance
In Maine, the annual percentage rate (APR) on a mortgage loan will typically be HIGHER than the note rate because:
AMaine law requires a minimum APR surcharge
BThe APR includes additional costs like loan origination fees✓ Correct
CLenders are required to pad their rates for safety
DThe APR includes the property tax escrow
Explanation
The APR is higher than the note interest rate because it includes additional loan costs such as origination fees, points, and certain closing costs, providing a more comprehensive measure of loan cost.
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