Finance
A Kentucky buyer obtains a mortgage and receives a Truth in Lending disclosure. The 'finance charge' on the disclosure includes:
AOnly the interest charges over the loan term
BTotal cost of credit including interest and certain fees✓ Correct
COnly origination fees and points
DProperty taxes and insurance escrow
Explanation
The finance charge under TILA includes the total cost of credit: interest charges over the loan term plus certain fees (origination fees, points, mortgage insurance), expressed as both a dollar amount and APR.
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