Escrow & Title
TRID disclosures apply to which of the following loan types?
AAll commercial loans
BMost residential mortgage loans secured by real property✓ Correct
COnly FHA loans
DOnly loans over $400,000
Explanation
TRID (TILA-RESPA Integrated Disclosures) applies to most residential mortgage loans secured by real property, including purchase loans and refinances. Certain types (reverse mortgages, HELOCs) are exempt.
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Key Terms to Know
Loan-to-Value Ratio (LTV)
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.
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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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