Finance
Under the federal Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to a West Virginia borrower:
AIs always the same as the note interest rate
BReflects the true cost of credit including fees, expressed as a yearly rate✓ Correct
CIs set by the West Virginia Division of Banking
DOnly applies to fixed-rate mortgages
Explanation
The APR under TILA reflects the total cost of credit—including the interest rate, points, broker fees, and certain other charges—expressed as an annual percentage. It allows borrowers to compare loan costs across lenders.
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