Finance
What is 'yield' on a mortgage in Rhode Island?
AThe annual income generated by a rental property
BThe effective interest rate earned by the lender, which may differ from the stated rate due to points and fees✓ Correct
CThe appraised value divided by the loan amount
DThe borrower's income used to qualify for the loan
Explanation
Yield (or effective yield) is the actual rate of return earned by the lender on a mortgage, taking into account the stated interest rate, discount points, and fees. It is typically higher than the stated rate.
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