Finance
In a mortgage transaction, the mortgagor is:
AThe lender
BThe borrower who pledges the property as security✓ Correct
CThe title company
DThe mortgage servicer
Explanation
The mortgagor is the borrower who gives the mortgage (pledges the property as security for the loan). The mortgagee is the lender who receives the mortgage.
People Also Study
Related Alabama Questions
- Under Alabama mortgage law, a lender's right to demand full loan repayment if the property is sold is called a(n):Finance
- In Alabama, the document that creates a lien on real property as security for a mortgage loan is called a:Finance
- A borrower takes a $180,000 FHA loan. What is the approximate upfront mortgage insurance premium (UFMIP) at 1.75%?Finance
- A lender who charges a fee for processing, originating, and underwriting a mortgage loan is charging a(n):Finance
Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Study This Topic
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →