Which document provides a borrower with a standardized breakdown of estimated closing costs within 3 business days of a loan application?
Why Loan Estimate Is Correct
Answer C: Loan Estimate
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
- The federally mandated disclosure that shows the estimated loan terms and closing costs is called the:Finance
- Under TRID rules, which document must a lender provide to a borrower within 3 business days of receiving a completed loan application?Finance
- A property has a $250,000 loan at 7.2% annual interest. The monthly payment is $1,700. How much of the FIRST monthly payment goes to principal?Real Estate Math
- A borrower takes out a $350,000 mortgage at 7% annual interest for 30 years. The monthly P&I payment factor per $1,000 borrowed at 7% for 30 years is $6.653. What is the monthly payment?Real Estate Math
- A loan has a balance of $285,000. Monthly interest charged is $1,662.50. What is the annual interest rate?Real Estate Math
- A borrower obtains a $400,000 loan at 6% annual interest. What is the first month's interest-only payment?Finance
- A borrower makes 360 monthly payments of $1,200. The original loan was $180,000. How much total interest was paid?Real Estate Math
- A loan in which the interest rate changes periodically based on a financial index is called a(n):Finance
Key Terms to Know
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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.
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.
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 →