Finance
The 'note rate' on a mortgage refers to:
AThe APR including all fees
BThe contractual interest rate stated in the promissory note✓ Correct
CThe rate set by the Federal Reserve
DThe rate charged after loan modification
Explanation
The note rate (also called the contract rate or coupon rate) is the interest rate stated in the promissory note. It differs from the APR, which includes the note rate plus fees expressed as an annual rate.
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