Finance
A Delaware homeowner who refinances their primary residence mortgage has a federally mandated right of rescission for how long?
A1 business day
B3 business days✓ Correct
C7 calendar days
D10 business days
Explanation
Under TILA (Regulation Z), a borrower who refinances their primary residence (not a purchase) has a 3-business-day right of rescission after signing. During this period, the loan cannot be funded.
People Also Study
Related Delaware Questions
- A Delaware homeowner sells their home for $425,000 after owning it for 5 years. Original purchase price was $330,000. Selling costs total $28,000. What is the net gain?Real Estate Math
- A Delaware home purchase contract includes a mortgage contingency requiring the buyer to obtain financing at 7% or lower. If rates rise to 7.5% and the buyer cannot qualify, what happens?Contracts
- Which type of mortgage requires the borrower to pay only interest for a specified period, after which principal payments begin?Finance
- In a Delaware real estate transaction, earnest money is typically held by:Contracts
- What is the legal remedy of 'specific performance' in a Delaware real estate transaction?Contracts
- A 'balloon mortgage' in Delaware requires the borrower to:Finance
- A Delaware seller owes $145,000 on their mortgage and wants to net $85,000 after a 6% commission and $3,000 in closing costs. What must the property sell for?Real Estate Math
- In Delaware, which type of listing agreement gives the broker an exclusive right to sell AND earn a commission even if the owner finds their own buyer?Contracts
Key Terms to Know
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.
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.
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →