Which of the following loans would NOT be excluded under the definition of a higher-priced loan?

The correct choice highlights that a purchase loan is not excluded from the definition of a higher-priced loan. According to the regulations established under the Truth in Lending Act (TILA), specifically linking to higher-priced mortgage loans (HPML), various types of loans are evaluated based on their pricing and terms.

Purchase loans are indeed included in this definition as they can potentially carry higher interest rates, especially in certain market conditions or for borrowers with lower credit scores. The intention behind classifying certain loans as higher-priced is to provide more consumer protection in scenarios where borrowers are taking on additional financial risk.

On the other hand, refinance loans, home equity loans, and student loans may fall under different regulatory considerations or may be excluded from the higher-priced category based on certain criteria outlined in the law. Understanding these distinctions helps clarify the application of federal regulations regarding mortgage lending and consumer protection.

Overall, recognizing that a purchase loan is subject to the same considerations regarding pricing and borrower protection ensures that consumers are informed about the potential risks and terms associated with taking out a mortgage for buying a home.