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Mortgages & Loans

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  4. In relation to the mortgage process , what is the Annual Percentage rate ?

In relation to the mortgage process , what is the Annual Percentage rate ?

The annual percentage rate, sometimes referred to as the APR is the cost of credit expressed as a yearly rate. It takes into account interest, points, and the other finance charges. Disclosure of the Annual Percentage rate is required by the Federal Truth in Lending Act. It allows borrowers to compare the costs of different mortgage loans and make an educated decision.

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