course hero, which of the following was true about adjustable rate mortgages (arms)?

Adjustable rate mortgages are fixed for a specified period of time before they transition to an adjustable or variable rate. After the initial fixed-rate period, the interest rate can increase or decrease significantly during the remaining term of the loan, according to the market index.

Full Answer

Which rate do lenders use?

How long does it take to receive a revised loan estimate?

What is an appraisal?

What does the VA use to determine the value of a property?

Who is responsible for closing disclosure?

Does the APR have to be included in the closing disclosure?

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1. An event that is beyond the control of the creditor or the borrower that occurs, such as a NATURAL DISASTER 2. Information that was known or provided at the time of the applicatin changed subsequent to the application and caused a change in the INITIAL TERMS, like interest rates or settlement service providers charges.

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Which rate do lenders use?

Answer: Lenders must use the higher of either the fully indexed rate or introductory rate.

How long does it take to receive a revised loan estimate?

If it is mailed or delivered electronically (email, fax, etc.), the consumer is considered to have received it three business days after the disclosure is mailed or transmitted.

What is an appraisal?

An appraisal is only an estimate or opinion. It is not a guarantee of value or the ultimate price that a buyer actually pays.

What does the VA use to determine the value of a property?

The VA uses a Certificate of Reasonable Value to determine the property value. The VA orders an appraisal from which it determines the property's value, and then issues the Certificate of Reasonable Value.

Who is responsible for closing disclosure?

TILA places the responsibility for the borrower's Closing Disclosure with the lending company (creditor/MLO/lender).

Does the APR have to be included in the closing disclosure?

Any inquiry must also include the APR - also known as the true cost or the costs of financing. While a borrower certainly must receive a Closing Disclosure prior to getting a loan, this question only addresses a loan inquiry

Which rate do lenders use?

Answer: Lenders must use the higher of either the fully indexed rate or introductory rate.

How long does it take to receive a revised loan estimate?

If it is mailed or delivered electronically (email, fax, etc.), the consumer is considered to have received it three business days after the disclosure is mailed or transmitted.

What is an appraisal?

An appraisal is only an estimate or opinion. It is not a guarantee of value or the ultimate price that a buyer actually pays.

What does the VA use to determine the value of a property?

The VA uses a Certificate of Reasonable Value to determine the property value. The VA orders an appraisal from which it determines the property's value, and then issues the Certificate of Reasonable Value.

Who is responsible for closing disclosure?

TILA places the responsibility for the borrower's Closing Disclosure with the lending company (creditor/MLO/lender).

Does the APR have to be included in the closing disclosure?

Any inquiry must also include the APR - also known as the true cost or the costs of financing. While a borrower certainly must receive a Closing Disclosure prior to getting a loan, this question only addresses a loan inquiry