Which threshold is NOT used to identify high-cost home loans?

The finance charge threshold is a key factor in identifying high-cost home loans. High-cost mortgages are often defined based on specific metrics established in regulations, such as the Home Ownership and Equity Protection Act (HOEPA). These criteria focus primarily on the annual percentage rate (APR) in comparison to a certain benchmark, as well as limits on points and fees, rather than relying on a borrower's income level or an appraisal threshold.

An income threshold does not apply in the context of identifying high-cost loans because it is not an indicator of the loan's costs or terms but rather a measure of a borrower's financial capability. Points and fees thresholds are crucial for high-cost designations, as they directly relate to the costs associated with obtaining the loan. Appraisal thresholds, while relevant in some lending contexts, do not have a direct relationship with identifying high-cost loans under the established legal definitions. Therefore, the finance charge threshold remains a central component for categorizing loans as high-cost and is essential in the overall regulatory framework.