The annual percentage rate (APR)on a mortgage is:

Question

Quizplus · Accepted Answer

The annual percentage rate (APR) on a mortgage is the effective yield taking into account discount points, so choice B is correct. Option A is incorrect because the contract rate is not necessarily the same as the APR, as it does not account for certain fees and charges. Option C is incorrect because the APR is for the entire life of the loan, not just the first year. Option D is also incorrect because while the monthly rate multiplied by twelve would give you the annual interest rate, it does not take into account other fees and charges that are included in the APR.

The Annual Percentage Rate (APR)on a Mortgage Is