Chapter 6 Flashcards
(13 cards)
ARM
Adjustable Rate Mortgage
-The interest rate adjust with the index
APR
Annual percentage Rate
-interest rate on a loan on an annual basis
Closing Disclosure
Reflects the actual terms of the transaction
CFPB
Consumer Financial Protection Bureau
-Regulates and controls all consumer loans.
Creditor
Person who extends credit more the 25 times per year
-more then 5 times in a year if transactions are secured by real estate
Disclosure
A written statement that details for the buyer/norrower all the information involved in the transaction
Finance Charge
- Interest charges
- discount points
- appraisal fees
- inspections fees
- any mortgage insurance fees
HELOC
-Home Equity Line of Credit
Loan Estimate
must be sent to the borrower within 3 business days of applying for the loan
Regulation Z
Requires disclosure of all finance charges
Right of Recission
Right to cancel the loan
Triggers
terms used in advertisement
- Interest Rate
- Dow payment
- loan period
- finance charges
- payment amounts
TILA
how to calculate the cost of credit by mandating the disclosure of the APR which is a single number allowing easy comparison of loan rates
