Question

Borrowers must receive an additional set of disclosures three days prior to closing on high-cost home loans. These disclosures include:

The APR ( which stands for what?)
A) Annual Payment Rate
B) Annual Percentage Rate
C) Adjustable Payment Ratio
D) Adjustable Percentage Rate

Answer 1

The APR stands for Annual Percentage Rate. It is a measure of the cost of credit expressed as a yearly interest rate.

Step-by-step explanation:

The correct answer is B) Annual Percentage Rate

The APR stands for Annual Percentage Rate. It is a measure of the cost of credit expressed as a yearly interest rate. It takes into account not only the interest rate on the loan, but also certain fees and other costs associated with borrowing money.

For example, if a borrower is considering two loans with different interest rates, they can compare the APRs to determine which loan is more expensive.