Finance
Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) disclosed to Montana borrowers:
AEquals the interest rate on the loan
BReflects the true cost of borrowing including the interest rate plus certain fees, expressed as an annual percentage✓ Correct
CIs always lower than the stated interest rate
DIs calculated by the Montana Board of Realty Regulation
Explanation
The APR includes the interest rate plus certain loan fees and costs (points, mortgage insurance, etc.) expressed as an annual percentage, giving borrowers a more complete picture of the true cost of the loan.
Related Montana Finance Questions
- In Montana, a 'commercial real estate loan' typically has what key difference from a residential mortgage in terms of qualifying?
- Under Montana law, what is the statutory redemption period after a non-judicial foreclosure sale on a deed of trust?
- A mortgage is a lien on real property that:
- A USDA Rural Development loan is designed for:
- A buyer obtains a mortgage loan where the interest rate can change periodically based on a market index. This is known as a:
- A borrower has a monthly gross income of $6,500. A lender's housing expense ratio guideline is 28%. What is the maximum allowable monthly housing payment?
- Under the Truth in Lending Act (TILA), what must lenders disclose to borrowers?
- The Good Faith Estimate (GFE) was replaced under the TRID rule by the:
Practice More Montana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Montana Quiz →