Under Illinois usury laws, what is the maximum interest rate that can be charged on a residential mortgage loan?
Correct Answer
D) There is no maximum for residential mortgages
Illinois usury laws generally do not apply to residential mortgage loans secured by real estate, so there is no maximum interest rate for such loans.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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