Federal Mortgage LawsQuestion 33 of 400
Under Regulation Z, a 'finance charge' includes which of the following?
a.The seller's real estate commission
b.Title insurance chosen by the borrower
c.Loan origination fees and points paid to obtain the loan
d.Property taxes paid to the county
Explanation
The finance charge under TILA is the cost of credit as a dollar amount and includes items like origination fees, points, and certain mortgage insurance and interest. Real estate commissions, borrower-selected title insurance, and property taxes are generally excluded from the finance charge. Correctly identifying finance charges is essential to computing the APR.
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