Finance
In NJ mortgage practice, the difference between the note rate and the Annual Percentage Rate (APR) is that the APR:
AIs always lower than the note rate
BIncludes the interest rate plus certain financing costs, providing a true cost of credit comparison✓ Correct
CIs set by the NJREC
DOnly applies to adjustable-rate mortgages
Explanation
The APR includes the nominal interest rate plus certain financing costs (points, origination fees, mortgage insurance), making it higher than the note rate and allowing borrowers to compare loan costs across lenders.
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