Finance
What does the Truth in Lending Act (TILA) require lenders to disclose?
AProperty tax estimates
BAnnual Percentage Rate (APR)✓ Correct
CHomeowner association fees
DTitle insurance costs
Explanation
TILA requires lenders to disclose the Annual Percentage Rate (APR), which includes the interest rate plus other loan costs, giving borrowers a true cost of borrowing.
People Also Study
Related Ohio Questions
- What does the annual percentage rate (APR) include that the stated interest rate does not?Finance
- A buyer's loan has a balance of $180,000 at an annual interest rate of 6%. What is the monthly interest payment for the first month?Real Estate Math
- Which federal law requires lenders to provide borrowers with a Loan Estimate (LE) within three business days of receiving a mortgage application?Finance
- A 6% mortgage on a $200,000 loan has an annual interest cost of $12,000 in the first year. What is the approximate monthly interest?Real Estate Math
- A buyer purchases a home for $430,000, putting 10% down and financing the rest. The lender requires PMI at 0.8% annually of the loan amount. What is the annual PMI cost?Real Estate Math
- An Ohio lender charges a borrower 3 points to buy down the interest rate on a $240,000 loan. What is the cost of the buydown?Finance
- Ohio law requires sellers of residential property to disclose the presence of known hazardous materials on the Ohio Residential Property Disclosure Form. This includes:Environmental
- A mortgage of $150,000 has an annual interest rate of 6%. The monthly P&I payment is $899.33. How much of the first month's payment goes to interest?Real Estate Math
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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
Study This Topic
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →