An Arizona buyer assumes the seller's existing mortgage. The buyer's lender requires a 'due-on-sale' clause to be enforced. This means:
Why The full remaining loan balance is due upon transfer of the property Is Correct
Answer C: The full remaining loan balance is due upon transfer of the property
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.
Key Finance Terms in This Question
People Also Study
Related Arizona Questions
- A buyer in Arizona assumes an existing mortgage. If the assumption is 'qualified,' this means:Finance
- An Arizona 'assumption fee' charged by a lender when a buyer assumes an existing mortgage is:Escrow & Title
- A 'due-on-sale' clause in a mortgage or deed of trust requires:Finance
- A buyer assumes an existing $200,000 mortgage on an Arizona property. The purchase price is $290,000. The buyer pays the difference in cash. What is the buyer's cash requirement at closing (excluding all other closing costs)?Finance
- Discount points paid on an Arizona mortgage loan:Finance
- A buyer in Arizona takes title 'subject to' an existing mortgage. This means:Escrow & Title
- When a buyer 'assumes' an existing mortgage in Arizona, the buyer:Escrow & Title
- An Arizona buyer's agent who also works part-time for a mortgage company and refers buyers to that company without disclosure is:Agency
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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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.
Study This Topic
Practice More Arizona Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →