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The Annualized Percentage Rate (APR) of a Home Purchase Mortgage

question 71

Essay

The annualized percentage rate (APR) of a home purchase mortgage may be larger than the interest rate stated in the note if __________________ are paid by the borrower to the lender.​


Definitions:

Amplitude

A measurement of the magnitude of change in a fluctuating variable, often used in physics to describe the height of a wave from its midpoint.

Diminished

Reduced in size, importance, or intensity.

Adduction

Movement towards the midline of the body, as in bringing the fingers or toes together.

Abduction

The act of forcibly taking someone away against their will, often used in the contexts of kidnapping or moving a limb away from the body's central line.

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