Which type of loan would NOT be classified as a higher-priced loan?

The classification of loans as higher-priced primarily relates to the interest rate in comparison to a benchmark rate, typically the average prime offer rate (APOR) at the time the loan is made. A purchase loan that meets mandated triggers can often be subject to specific regulations and requirements that dictate terms, but this does not automatically classify it as higher-priced.

Higher-priced loans are assessed based on a combination of fees and interest rates; thus, a purchase loan can fall below the thresholds that define them as higher-priced, especially if the borrower has a good credit profile or if the loan terms are favorable.

In contrast, refinance loans, home equity loans, and reverse mortgages are frequently associated with higher costs due to additional risks, borrower profiles, and lending practices, which can push them into higher-priced classifications more often than standard purchase loans. Thus, while a purchase loan can be scrutinized under different regulations, it does not automatically carry the same classification as the other types listed, which tend to involve higher costs or fees due to their nature. This understanding aligns with the principles of loan assessment under regulations that determine what constitutes a higher-priced loan.