Finance
A Washington borrower refinancing their home to take cash out will receive a Truth in Lending disclosures and has the right to cancel the refinance within:
A24 hours
B3 business days✓ Correct
C7 calendar days
D30 days
Explanation
The Truth in Lending Act (TILA) provides a 3-business-day right of rescission for non-purchase money mortgages secured by the borrower's primary residence, including refinances and cash-out refinances.
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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.
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.
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.
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