The ALTA lender's title insurance policy protects the lender for the life of the loan up to:
Why The outstanding loan balance Is Correct
Answer B: The outstanding loan balance
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
People Also Study
Related Alabama Questions
- Which type of title insurance policy protects the lender in an Alabama real estate transaction?Escrow & Title
- A title insurance policy that protects the lender's interest is called a:Escrow & Title
- A lender's title insurance policy protects:Escrow & Title
- An Alabama title insurance policy protects the insured against:Escrow & Title
- Which type of loan insures the lender against loss and allows borrowers to purchase with as little as 3.5% down with a 580+ credit score?Finance
- A $220,000 loan has a monthly payment of $1,319. After the first payment, the remaining balance is $219,731. How much principal was paid in the first month?Real Estate Math
- Private mortgage insurance (PMI) on a conventional loan is typically automatically cancelled when the loan balance reaches:Finance
- What is the purpose of title insurance from a lender's perspective?Finance
Key Terms to Know
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
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.
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.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
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 →