West Virginia Mortgage Law Practice Test

What is the maximum rate of interest that may be applied to a mortgage loan transaction in West Virginia, unless agreed upon in writing?

1. 6%

2. 8%

3. 10%

4. 5%

The correct answer is: 6%

The correct answer for the maximum rate of interest that may be applied to a mortgage loan transaction in West Virginia, unless otherwise agreed upon in writing, is 8%. In West Virginia, the legal maximum default interest rate for residential mortgage loans is set by the state, and understanding these regulations is crucial for both lenders and borrowers. The law provides guidance on what interest rates are permissible to protect consumers while ensuring that lenders can operate within a framework that allows them to earn a fair return on the loans they extend. Other options presented do not align with the established legal framework regarding interest rates for mortgage loans in the state. Knowing the correct interest rate helps borrowers understand their rights and gives lenders a basis for structuring mortgage agreements in compliance with state laws.