what is considered a high cost mortgage loan

Best answer

Above-average fees or interest

People also ask

  • What is a high-cost mortgage loan?

  • High-cost loans can’t have certain features under federal law, such as some types of balloon payments in the terms of the mortgage. A high-cost loan can’t charge fees for loan modifications loan or for a loan payoff statement. There are restrictions on fees and practices, such as a limit on late fees to 4 percent of the past due payment.

  • What are high-cost FHA loan fees?

  • Fees that are calculated in high cost includes upfront mortgage insurance premium, yield spread premium, origination fees, underwriting fees, and other fees and costs associated with obtaining a mortgage loan Just the FHA upfront mortgage insurance premium is 1.75% that automatically gets applied to the 5% high-cost maximum limit.

  • What are the requirements for a high cost mortgage?

  • 1026.32 Requirements for high-cost mortgages. (a) Coverage. (1) The requirements of this section apply to a high-cost mortgage, which is any consumer credit transaction that is secured by the consumer’s principal dwelling, other than as provided in paragraph (a) (2) of this section, and in which:

  • What are the features of a high cost home loan?

  • Features of High-Cost Loans. A high-cost home loan exceeds one of two thresholds set by the federal government: the interest rate threshold or the point and fees threshold. The interest threshold for a first mortgage is a rate of 6.5 percentage points above the APOR.

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