Finance
What is the 'three-day right of rescission' under TILA in Oregon mortgage transactions?
AThe right to cancel any real estate purchase within 3 days of signing
BThe right to rescind a refinance or home equity loan on a primary residence within 3 business days of consummation✓ Correct
CThe right to cancel an appraisal order within 3 days
DThe right to withdraw an offer within 3 days of submission
Explanation
TILA's right of rescission allows borrowers to cancel a refinance transaction or new home equity loan (not a purchase money mortgage) on their principal residence within 3 business days of signing, receiving the required disclosures, and receiving notice of the right. This federal protection does not apply to purchase transactions.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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.
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.
Math Concepts
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