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LuckyWell [14K]
3 years ago
7

Required by the Truth-in-Lending Act, the annual percentage rate (APR) is reported by the lender to the borrower on virtually al

l U.S. home mortgage loans. The APR accounts for all of the following EXCEPT:
A. All finance charges in connection with the loan, such as discount points, origination fees, and underwriting fees.
B. All compensation to the originating brokers if one was used by the borrower.
C. Any prepayment of principal to be made on the loan.
D. Premiums for required forms of insurance
Social Studies
1 answer:
juin [17]3 years ago
6 0

Answer:

C. Any prepayment of principal to be made on the loan

Explanation:

Required by the Truth-in-Lending Act, the annual percentage rate (APR) is reported by the lender to the borrower on virtually all U.S. home mortgage loans. The APR accounts for :

All finance charges in connection with the loan, such as discount points, origination fees, and underwriting fees; All compensation to the originating brokers if one was used by the borrower; Premiums for required forms of insurance except Any prepayment of principal to be made on the loan, Prepayment is a facility that helps you repay your housing loan if your have more than enough money before the end of your loan tenure and it helps to reduce interest burden.

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