What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California real estate transactions?
Why To require lenders to disclose the Annual Percentage Rate (APR) and total loan costs to borrowers Is Correct
Answer B: To require lenders to disclose the Annual Percentage Rate (APR) and total loan costs to borrowers
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
People Also Study
Related California Questions
- What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California residential mortgage loans?Finance
- The Truth in Lending Act (TILA) requires lenders to disclose:Finance
- The Truth in Lending Act (TILA) requires lenders to disclose the:Finance
- Under Regulation Z (Truth in Lending Act), if a lender advertises a specific monthly payment, they must also disclose:Finance
- What is the primary purpose of the California Department of Real Estate (DRE)?DRE & Licensing
- What is the primary fiduciary duty that requires an agent to always act in the client's best interest?Agency
- California requires sellers of residential property to disclose whether the property is located in a Special Flood Hazard Area. This information is found on:Environmental
- What is the purpose of the California Mortgage Loan Originator (MLO) license endorsement?DRE & Licensing
Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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.
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.
Math Concepts
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →