What is the 'Truth in Lending Act' (TILA) and how does it protect Delaware borrowers?
Why A federal law requiring lenders to disclose the annual percentage rate (APR), finance charges, and total cost of credit so borrowers can comparison shop Is Correct
Answer B: A federal law requiring lenders to disclose the annual percentage rate (APR), finance charges, and total cost of credit so borrowers can comparison shop
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
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Key Terms to Know
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
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.
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