Finance
On a Wisconsin mortgage loan, the annual percentage rate (APR) differs from the stated interest rate because the APR:
AExcludes escrow reserves
BReflects the true cost of borrowing including fees and points✓ Correct
CIs always lower than the stated interest rate
DIs set by the Wisconsin DSPS
Explanation
The APR reflects the true annual cost of the loan including the interest rate, points, and certain fees, making it higher than the stated note rate in most cases. TILA requires APR disclosure.
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