Finance (alternative)
In Maryland, the APR on a mortgage will be equal to the stated interest rate when:
AThe loan is a 30-year fixed
BThere are no additional costs or fees associated with obtaining the loan✓ Correct
CThe loan is FHA insured
DThe buyer pays cash
Explanation
The APR equals the stated rate only when there are zero additional costs. In practice, there are always fees, so APR is virtually always higher than the stated interest rate.
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