Finance
Under the Truth-in-Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to a Maine borrower:
AIs always the same as the note interest rate
BIncludes the interest rate plus certain loan fees and costs✓ Correct
CIs set by the Maine Bureau of Financial Institutions
DOnly applies to adjustable-rate mortgages
Explanation
The APR reflects the true cost of borrowing by including the interest rate plus certain fees and costs associated with the loan, giving borrowers a more complete picture of loan cost.
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