Finance
Regulation Z (Truth in Lending) requires that the APR disclosed to borrowers must include:
AOnly the note rate (interest rate on the promissory note)
BThe interest rate plus finance charges and fees expressed as a yearly rate✓ Correct
CThe interest rate plus property taxes and insurance
DOnly discount points paid by the borrower
Explanation
APR includes the note rate plus prepaid finance charges — such as loan origination fees, discount points, and mortgage insurance premiums — expressed as a yearly rate, giving the borrower a more complete picture of the loan cost.
Related Arizona Finance Questions
- An Arizona lender who originates loans and immediately sells them in the secondary market is engaging in the:
- An Arizona borrower obtains a loan where the interest rate can change periodically based on an index. This is called a:
- Arizona's anti-deficiency statute (A.R.S. § 33-729) generally prohibits a lender from obtaining a deficiency judgment after a trustee's sale (non-judicial foreclosure) on:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in lending based on all EXCEPT:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in credit decisions based on:
- Under a deed of trust in Arizona, who holds legal title to the property during the loan period?
- Arizona is classified as which type of mortgage state?
- An Arizona buyer secures a VA loan to purchase a home. VA loans are guaranteed by the Department of Veterans Affairs and require:
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →