What does the Truth in Lending Act (TILA) require lenders to disclose to Alabama borrowers?
Why The annual percentage rate (APR) and total cost of credit Is Correct
Answer B: The annual percentage rate (APR) and total cost of credit
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Alabama Questions
- The Truth in Lending Act (TILA) requires lenders to disclose the:Finance
- Which federal law requires lenders to provide borrowers with a Loan Estimate within 3 business days of receiving a loan application?Finance
- Alabama property has an assessed value of $18,000 (at 10% of market value). The tax rate is 50 mills. What is the annual property tax?Real Estate Math
- Which federal law requires sellers to disclose known lead-based paint hazards in homes built before 1978 in Alabama?Environmental
- In Alabama, which type of loan has an interest rate that changes periodically based on a market index?Finance
- An Alabama property has a market value of $350,000. It is assessed at 10% for tax purposes. The mill rate is 40 mills. What are the annual property taxes?Real Estate Math
- An Alabama buyer qualifies for a $250,000 loan with a monthly payment of $1,500. What is the annual debt service?Finance
- A property's purchase price is $180,000 with a 20% down payment. The buyer also pays 2 points on the loan. What is the total cost of the points?Real Estate Math
Key Terms to Know
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Math Concepts
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →