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Since mortgages typically have multiple costs associated with them, a borrower may attempt to reduce these costs into a single measure in order to compare two or more mortgages. Which of the following
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Since mortgages typically have multiple costs associated with them, a borrower may attempt to reduce these costs into a single measure in order to compare two or more mortgages. Which of the following measures is a popular tool for comparing the cost of several mortgages?

a) underwriting standards
b) contracted interest rate
c) annual percentage rate
d) teaser rate

User Kkrambo
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Answer:

C. Annual percentage rate

Step-by-step explanation:

Annual percentage rate, called APR is defined as a yearly rate of interest a borrower must pay on a loan. It is used in measuring full cost of a lender charges per year for funds. It is used in comparing the cost of several mortgages. It is also the effective rate of interest that is charged on an installment loan. Annual percentage rate gives an individual the idea of how much he or she will pay in order to get a loan. It is expressed as a yearly rate.

User Thirdman
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