Finance
The annual percentage rate (APR) on a mortgage loan differs from the interest rate because the APR includes:
AOnly the principal and interest
BThe cost of the loan including fees and points✓ Correct
CThe property tax escrow amount
DHomeowner's insurance premiums
Explanation
The APR reflects the true cost of borrowing by including the interest rate plus loan origination fees, points, and other charges, expressed as a yearly rate for comparison purposes.
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