In Alaska, a 'participation mortgage' is one in which:
Why The lender participates in the income or appreciation of the property in addition to receiving interest Is Correct
Answer B: The lender participates in the income or appreciation of the property in addition to receiving interest
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Alaska Questions
- A mortgage lender in Alaska charges a higher interest rate to an applicant because of the neighborhood where the property is located, which has a predominantly minority population. This practice is known as:Fair Housing
- In Alaska, which type of mortgage clause allows the lender to demand full repayment of the loan upon the property's sale?Finance
- An Alaska commercial property has a net operating income of $60,000 per year. Using a 6% cap rate, the estimated value is:Property Valuation
- Which type of title insurance policy protects the lender's interest in an Alaska mortgage transaction?Escrow & Title
- An Alaska homeowner refinances a $240,000 mortgage to a new loan at a lower rate. The refinance saves $185/month in payments. Closing costs are $5,000. The break-even period is approximately:Real Estate Math
- Which of the following types of income would a lender MOST likely accept when qualifying an Alaska buyer for a mortgage?Finance
- An Alaska commercial property has a potential gross income of $200,000, vacancy rate of 5%, and operating expense ratio of 45% of EGI. The NOI is:Property Valuation
- An Alaska income property has an annual NOI of $66,000 and sells at a 7.5% cap rate. The buyer finances 75% of the purchase price at a 6.5% mortgage constant. What is the annual debt service?Real Estate Math
Key Terms to Know
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →