Finance
Annual Percentage Rate (APR) on a Maryland mortgage is higher than the stated interest rate because:
AMaryland imposes an additional state surcharge
BAPR includes the interest rate plus fees such as points, origination fees, and mortgage insurance✓ Correct
CAPR reflects only the principal payments
DAPR includes property taxes and homeowners insurance
Explanation
APR represents the true cost of borrowing by incorporating the interest rate plus other loan costs (points, origination fees, PMI), giving borrowers an apples-to-apples comparison.
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