Escrow & Title
In a New Mexico closing, the 'HUD-1' settlement statement has been replaced by the:
ATILA disclosure
BClosing Disclosure (CD) under TRID rules✓ Correct
CGood Faith Estimate
DAnnual Percentage Rate disclosure
Explanation
The TRID (TILA-RESPA Integrated Disclosure) rules replaced the HUD-1 settlement statement with the Closing Disclosure (CD) for most residential mortgage transactions, providing a final accounting of all closing costs.
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Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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