Finance
A NJ borrower who refinances their primary residence has the right to rescind the transaction within:
A24 hours
B3 business days✓ Correct
C5 business days
D10 days
Explanation
TILA grants borrowers a 3-business-day right of rescission on refinances and home equity loans on their primary residence; this does not apply to purchase transactions.
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Key Terms to Know
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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
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