In Arizona, a lender who charges an interest rate above the legal maximum may be guilty of:
Why Usury Is Correct
Answer B: Usury
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.
Key Finance Terms in This Question
An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
People Also Study
Related Arizona Questions
- An Arizona lender who refuses to lend in certain zip codes without consideration of individual creditworthiness is likely guilty of:Finance
- A lender who charges higher interest rates to borrowers from a specific ethnic neighborhood, regardless of their creditworthiness, is engaging in:Fair Housing
- A lender refuses to make mortgage loans in a specific low-income neighborhood regardless of individual applicant qualifications. This practice is called:Fair Housing
- An Arizona broker receives a net listing from a seller, which means the broker keeps everything above a set amount as commission. This practice is:Arizona License Law
- A buyer in Arizona obtains a $320,000 adjustable-rate mortgage (ARM) with an initial rate of 5.5%. The loan has a 2/2/5 cap structure. The MAXIMUM rate after the first adjustment is:Finance
- An Arizona borrower obtains a loan where the interest rate can change periodically based on an index. This is called a:Finance
- Arizona state law preempts certain local zoning ordinances with regard to:Land Use & Zoning
- A lender's 'rate sheet' in Arizona shows 'par rate' pricing. What does 'par' mean?Finance
Key Terms to Know
An illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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.
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.
Math Concepts
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →