Finance
In NH, the annual percentage rate (APR) on a mortgage loan differs from the stated interest rate because:
AAPR reflects only the state's transfer tax
BAPR includes the interest rate plus lender fees, points, and other costs expressed as a yearly rate✓ Correct
CAPR is always lower than the stated interest rate
DAPR applies only to adjustable-rate mortgages
Explanation
The APR is a broader measure of borrowing cost that includes the interest rate plus lender fees, discount points, mortgage insurance, and other loan costs, expressed as an annual rate. TILA requires lenders to disclose the APR so borrowers can compare loans more accurately.
Related New Hampshire Finance Questions
- A construction-to-permanent loan for a new NH home converts from a construction loan to a permanent mortgage:
- Which of the following best describes a 'balloon mortgage'?
- Which government-sponsored enterprise (GSE) purchases conventional conforming mortgages in the secondary market?
- A New Hampshire buyer using a FHA loan must pay:
- A discount point on a New Hampshire mortgage loan equals:
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- A NH buyer's lender issues a 'commitment letter' after underwriting. This letter:
- A NH buyer's loan officer quotes a 30-year fixed mortgage at 7.25% with an APR of 7.55%. The difference between the rate and APR is due to:
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