A borrower is presented with three loans: Loan A at 6.0% with $3,000 points, Loan B at 6.5% with $1,000 points, and Loan C at 7.0% with no points. Which loan represents the 'lowest points and fees' category?
Correct Answer
C) Loan C
Loan C with no points represents the lowest points and fees category. The anti-steering provision requires presenting the loan option with the lowest total points and fees, regardless of the interest rate. Zero points is lower than any positive point amount.
Why This Is the Correct Answer
Loan C with no points represents the lowest points and fees category. The anti-steering provision requires presenting the loan option with the lowest total points and fees, regardless of the interest rate. Zero points is lower than any positive point amount.
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