Finance
In New York, the 'Truth in Lending Act' (TILA) requires lenders to disclose the 'Annual Percentage Rate' (APR), which represents:
AOnly the stated interest rate on the loan
BThe true cost of credit expressed as a yearly rate, including interest and certain fees✓ Correct
CThe maximum interest rate the lender can charge
DThe rate at which the loan balance decreases each year
Explanation
TILA requires lenders to disclose the APR — the cost of credit expressed as a yearly rate — which includes the interest rate plus certain fees (points, mortgage insurance, etc.).
Related New York Finance Questions
- In New York, the 'debt-to-income ratio' (DTI) used by lenders measures:
- A lender 'redlines' a neighborhood when it:
- In New York, 'points' paid at closing on a mortgage are:
- In New York City, a 'flip tax' in a co-op building is:
- In New York, 'points' paid to reduce the mortgage interest rate (discount points) are sometimes called:
- The 'Annual Percentage Rate' (APR) on a mortgage is typically higher than the stated interest rate because:
- In New York, a 'rate lock' on a mortgage application protects the borrower by:
- When a mortgage lender sells a loan on the secondary market, the original lender:
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →