What does 'assumption of mortgage' mean in an Alaska real estate transaction?
Why The buyer takes over the seller's existing mortgage obligation with the lender's consent Is Correct
Answer B: The buyer takes over the seller's existing mortgage obligation with the lender's consent
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
- In Alaska, which type of mortgage clause allows the lender to demand full repayment of the loan upon the property's sale?Finance
- In Alaska, a purchaser buys property with an existing mortgage they assume. If the seller is released from the debt by the lender, this is called:Escrow & Title
- An Alaska buyer assumes an existing mortgage. Which statement is TRUE about mortgage assumption?Finance
- An Alaska lender requires title insurance as a condition of making a mortgage loan. The cost is typically paid by:Finance
- An Alaska buyer's financing contingency expires. The buyer has not yet received loan approval. Without a written extension, the financing contingency is:Contracts
- 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
- An Alaska property has a mortgage constant of 7.2% and an NOI of $54,000. If the debt coverage ratio requirement is 1.2, what is the maximum loan amount the lender would approve?Finance
- In Alaska, a real estate licensee who pays a kickback to a lender in exchange for loan referrals:Alaska License Law
Key Terms to Know
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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.
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 →