Escrow & Title
Under Alaska law, a 'partial release' from a blanket mortgage is triggered when:
AThe borrower refinances the entire loan
BA borrower pays a specified amount to release one parcel from coverage of a blanket mortgage✓ Correct
CThe lender agrees to lower the interest rate
DThe borrower sells all parcels covered by the mortgage
Explanation
A partial release occurs when a portion of the mortgaged property is released from the lien upon payment of a specified sum. This is common in construction and land development loans where the developer needs to sell individual lots and release them from the overall blanket loan.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Math Concepts
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