Property Ownership
A mortgage lien is what type of lien?
AVoluntary, specific lien✓ Correct
BInvoluntary, specific lien
CVoluntary, general lien
DInvoluntary, general lien
Explanation
A mortgage is a voluntary (agreed to by the borrower) and specific (attached to a specific property) lien. The borrower voluntarily pledges the property as collateral for the loan.
People Also Study
Related Arkansas Questions
- Arkansas is a 'lien theory' state. This means that when a borrower takes out a mortgage:Finance
- Arkansas is classified as a 'lien theory' state. This means that when a borrower takes out a mortgage:Finance
- Which type of mortgage loan is insured by the Federal Housing Administration (FHA)?Finance
- Which type of lien is created voluntarily by the property owner?Escrow & Title
- Which type of appraisal is typically required for a residential mortgage loan?Property Valuation
- A borrower earns $95,000 annually. Lender requires a maximum back-end ratio of 43%. The borrower has monthly car and student loan payments totaling $800. What is the maximum monthly mortgage payment (PITI)?Real Estate Math
- A property tax lien is an example of what type of lien?Property Ownership
- A judgment lien is what type of lien?Property Ownership
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.
EncumbranceAny claim, lien, charge, or liability attached to real property that affects its value or limits its use.
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.
Study This Topic
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →