Finance
The annual percentage rate (APR) on a mortgage loan differs from the stated interest rate because:
AAPR is always lower than the interest rate
BAPR includes the interest rate plus other loan costs such as points and fees✓ Correct
CAPR only applies to adjustable-rate mortgages
DAPR excludes prepaid interest
Explanation
APR reflects the true cost of borrowing by including the interest rate plus other costs such as discount points, origination fees, and mortgage broker fees, making it higher than the stated interest rate.
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