What are high-cost mortgage loans? What is the difference between high-cost versus high-priced loans. What is true about high-cost loans. Why can’t mortgage loan originators not understand high-cost loans and the violation of high-cost. What is high-cost lending. What is high-cost predatory lending. What is a high-priced loan? Can you please explain high-cost requirements. What are protections against high-cost mortgage loans.

What do they mean by being a high-cost mortgage loan? How would you answer this question on high-cost mortgage loans?

Robert took out a high-cost loan in Utah for $250,000 at 90% LTV at a rate of 11% and kept the loan for two years. Robert is now paying off the current loan amount of $247,617. What is the maximum prepayment penalty that can be charged under the Utah High-Cost Loan Rule? Calculate using simple interest.

Here is the answer to the above question:

Six months of interest at 80% of original value $250,000/90% (0.90)=$277,777 value x 80%= $222,222×11%(0.11)=$24,444/12×6 months= $12,222.

• This discussion was modified 10 months ago by  Susan.