Which of the following can also qualify as a high-cost loan threshold under federal law?

In the context of federal regulations governing high-cost loans, prepayment penalties are significant because they can impact the total cost of borrowing over the life of the loan. Under the Home Ownership and Equity Protection Act (HOEPA), loans that include certain terms, such as prepayment penalties, can trigger high-cost loan thresholds. This means that if a loan's terms include a prepayment penalty that is not allowed, or if the penalty is excessive, the loan may fall under the high-cost loan category, subjecting it to specific regulations aimed at protecting consumers.

Understanding this can help borrowers be aware that loans with unfavorable terms, like restrictive prepayment penalties, can signal higher costs and risks associated with those loans. This emphasizes the importance of reviewing all loan terms critically before proceeding. Other aspects, such as collateral appraisal values, loan payment history, or the employment status of the borrower, while relevant in the loan qualification process, do not directly relate to the characterization of a loan as high-cost under federal law. Thus, prepayment penalties play a unique and critical role in determining the cost classification of a loan.