Finance

The 'note rate' on a West Virginia mortgage refers to:

AThe APR including all closing costs
BThe stated interest rate on the promissory note, used to calculate monthly interest✓ Correct
CThe rate the Federal Reserve charges member banks
DThe maximum rate allowed under WV usury law

Explanation

The note rate is the stated interest rate in the promissory note, which is used to calculate the borrower's monthly interest payments. It differs from the APR, which includes fees and represents the true cost of credit.

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