Question

On the Loan Estimate (LE), which piece of data tells applicants how much they will be paying in interest over the life of the loan as a percentage of the loan?

A) Annual Percentage Rate (APR).
B) Total Interest Percentage (TIP).
C) Loan-to-Value (LTV) ratio.
D) Debt-to-Income (DTI) ratio.

Answer 1

The Total Interest Percentage (TIP) on the Loan Estimate (LE) tells applicants how much they will be paying in interest over the life of the loan as a percentage of the loan.

Step-by-step explanation:

The piece of data on the Loan Estimate (LE) that tells applicants how much they will be paying in interest over the life of the loan as a percentage of the loan is the Total Interest Percentage (TIP). The Total Interest Percentage (TIP) is a required disclosure that is expressed as a percentage of the loan amount. It represents the total amount of interest the borrower will pay over the loan term, expressed as a percentage of the loan amount.