A borrower has a current mortgage balance of $150,000 and wants to refinance to a new loan of $175,000. After paying off the existing mortgage and closing costs of $3,000, they will receive $22,000 in cash. What is the primary regulatory concern with this transaction?

A borrower is comparing two loan offers: Loan A has no points and 4.5% interest rate, Loan B has 2 points and 4.0% interest rate. The loan amount is $400,000. How much will the borrower pay upfront for the points on Loan B?

A lender charges a 1% origination fee on all loans. For a borrower obtaining a $250,000 mortgage, what is the maximum origination fee that can be charged without violating the points and fees test under the ATR/QM rule for a first-lien mortgage?

Under what circumstances can a Qualified Mortgage include a prepayment penalty?

A borrower is considering paying discount points to reduce their interest rate. Each point costs 1% of the loan amount and reduces the rate by 0.25%. On a $300,000 loan, how much would the borrower pay for 2 discount points?

A borrower asks about the difference between discount points and origination fees. What is the most accurate explanation?

A borrower refinances their home with a cash-out refinance loan of $750,000. The original loan balance was $400,000, and they're taking $300,000 in cash. If conforming limits allow $766,550, how is this loan classified?

Under TRID regulations, discount points must be disclosed on the Loan Estimate in which section?

During the draw period of a HELOC, what type of payments are borrowers typically required to make?

A borrower has a credit card with a $10,000 balance and $200 minimum monthly payment. They plan to pay off $8,000 of the balance before closing, leaving a $2,000 balance with a $40 minimum payment. How should this be calculated for DTI purposes?

An ARM uses the 1-year Treasury index, which is currently at 2.1%. The margin is 2.75%, but the loan has a floor rate of 5.5%. What rate will the borrower pay?