A New York home loan of $20,000 in 2026 carries total points and fees of $1,400. Does the points-and-fees amount alone cross the New York threshold for a loan of this size?
Correct Answer
B) Not high-cost: the test is the greater of 6% or $1,500
Below fifty thousand dollars the threshold is the greater of six percent of the total loan amount or fifteen hundred dollars, so on a $20,000 loan the $1,500 figure governs and $1,400 does not exceed it. Other choices: the five percent branch applies at fifty thousand or more; the small-loan test is not a flat percentage; and it is the greater rather than the lesser of the two. Source: N.Y. Banking Law § 6-l(1)(g)(ii)
Why This Is the Correct Answer
Below fifty thousand dollars the threshold is the greater of six percent of the total loan amount or fifteen hundred dollars, so on a $20,000 loan the $1,500 figure governs and $1,400 does not exceed it. Other choices: the five percent branch applies at fifty thousand or more; the small-loan test is not a flat percentage; and it is the greater rather than the lesser of the two. Source: N.Y. Banking Law § 6-l(1)(g)(ii)
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