What is the 'Annual Percentage Rate' (APR) as disclosed on the Loan Estimate and Closing Disclosure?
Correct Answer
A) The total cost of the loan expressed as a yearly rate, which includes the interest rate plus certain fees and charges
The APR represents the total cost of borrowing expressed as an annual rate. It includes the interest rate plus certain lender fees and charges, making it a more comprehensive measure of borrowing costs than the interest rate alone.
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