What is defined as a high cost loan under RLPA?

A high-cost loan under the Rhode Island Loan Protection Act (RLPA) is defined as a loan that meets specific rate and fee thresholds set by the law. This designation typically includes loans where the annual percentage rate (APR) exceeds a certain point above the average prime offer rate, or if the total points and fees exceed a defined amount. By establishing these criteria, the RLPA aims to protect borrowers from potentially predatory lending practices that could impose excessive costs.

The other options do not accurately capture the legal definitions within the RLPA. For instance, a loan with an interest rate below the prime rate would not qualify as high cost, as it implies that the cost is lower than the baseline market rate. Personal loans exceeding $10,000 or mortgages for less than $30,000 also do not inherently align with the specific thresholds and criteria for high-cost loans as defined by the RLPA, as these categories can vary widely in their terms and conditions without directly relating to the protection the law seeks to provide.