At a Kentucky closing, the proration of property taxes is typically calculated:
Correct Answer
D) Using a 365-day (or 366 in leap year) calendar year
Kentucky property tax prorations are typically calculated using the actual calendar year (365 or 366 days). Taxes are generally prorated between buyer and seller based on the closing date.
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Related Concepts
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
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