Finance (alternative)
Maryland's law on mortgage fraud makes it illegal to:
ACharge above-market interest rates
BKnowingly make a false statement or material omission in a mortgage loan transaction✓ Correct
COffer seller financing without a bank license
DChange a loan's interest rate after closing
Explanation
Maryland's Mortgage Fraud Protection Act makes it illegal to make knowing false statements, misrepresentations, or material omissions in connection with any mortgage loan transaction.
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Key Terms to Know
Discount Points
Prepaid 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.
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.
Math Concepts
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