Finance
The annual percentage rate (APR) on a mortgage is HIGHER than the stated interest rate because APR includes:
AOnly the monthly principal payments
BAdditional loan costs such as origination fees, discount points, and mortgage insurance✓ Correct
CThe property tax and insurance payments
DThe broker's commission
Explanation
APR reflects the true annual cost of borrowing by including not just the interest rate but also other loan costs (origination fees, points, mortgage insurance, etc.) spread over the loan term.
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