Points Paid by the Owner of a Personal Residence to Refinance

question 60

True/False

Points paid by the owner of a personal residence to refinance an existing mortgage must be capitalized and amortized over the life of the new mortgage.

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Definitions:

Consumer Products

Goods produced for personal use by the general public, including items for personal care, entertainment, and household use.

Fair Credit Reporting Act

A federal law designed to ensure accuracy, fairness, and privacy of information in the files of consumer reporting agencies.

Consumer Reporting Agencies

are entities that collect and disseminate information about consumers to be used in credit evaluations and other decisions.

Credit Reports

Detailed reports that include an individual's credit history, showing past and current credit transactions and their repayment record.