Under Regulation Z (Truth in Lending Act), the right of rescission allows a borrower to cancel:
Why A refinance on their primary residence within 3 business days of consummation Is Correct
Answer B: A refinance on their primary residence within 3 business days of consummation
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
- Under Regulation Z (Truth in Lending Act), if a lender advertises a specific monthly payment, they must also disclose:Finance
- In California, a lender who forecloses on a purchase money deed of trust on a 1-4 unit residential property occupied by the borrower is generally:Finance
- What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California real estate transactions?Finance
- What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California residential mortgage loans?Finance
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.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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.
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 →