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Can APR be Lower than Interest Rate?

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Question: 
According to Reg Z, can the APR ever be lower than the interest rate? I have a no fee mortgage loan transaction and the lender is paying the interim interest. My APR is less than the rate, is this acceptable, or does it need to be exact?
Answer: 

Sounds like the answer you're getting is exact. Think about it: if the borrower pays no fees and less than 100% of the interest that will accrue on the balance, the APR should be less than the IR.

First published on BankersOnline.com 10/18/10

First published on 10/18/2010

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