A Texas veteran uses the VLB home loan program to purchase a home for $250,000. The VLB charges 1 origination point. How much does the veteran pay in origination fees?
Correct Answer
A) $2,500
One origination point = 1% of loan amount. $250,000 × 0.01 = $2,500.
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Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
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A Texas homeowner's property is valued at $400,000 with a first mortgage of $160,000. She takes the maximum home equity loan at 7% annual interest. What is her monthly interest payment on the home equity loan?
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A Texas homestead valued at $800,000 has a first mortgage of $480,000. The homeowner takes the maximum home equity loan. The lender charges the maximum 3% fee. What is the total fee amount?