Question

Borrowers must receive an additional set of disclosures three days prior to closing on high-cost home loans. These disclosures include:

For a closed-end loan, the total amount being borrowed and whether that amount includes finance charges allowed in the calculation of ___________ and ___________.
A) APR, APOR
B) APM, ARM
C) ARM, APR
D) APR, APM

Answer 1

Borrowers receive disclosures three days prior to closing on high-cost home loans, which include the total amount being borrowed and whether it includes finance charges allowed in the calculation of APR and APM. Hence, the correct answer is option (D).

Step-by-step explanation:

The correct answer is option D) APR, APM.

The total amount being borrowed and whether that amount includes finance charges allowed in the calculation of APR (Annual Percentage Rate) and APM (Amount Paid Monthly) are disclosed to borrowers three days prior to closing on high-cost home loans.

APR is the total cost of borrowing expressed as an annual percentage, taking into account both the interest rate and fees associated with the loan. APM, on the other hand, refers to the actual monthly payment that the borrower is required to make.