Which of the following best describes a 'purchase money mortgage'?
Why Seller financing provided to a buyer as part of the property purchase Is Correct
Answer B: Seller financing provided to a buyer as part of the property purchase
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 California Questions
- What is seller financing (purchase money mortgage)?Finance
- A 'purchase money mortgage' is best described as:Finance
- In California, a lender who forecloses on a purchase money deed of trust on a 1-4 unit residential property occupied by the borrower is generally:Finance
- Under California's anti-deficiency statutes, which type of loan is protected from a deficiency judgment after non-judicial foreclosure?Finance
- Which of the following describes an 'as-is' clause in a California residential purchase agreement?Contracts
- Which type of deed provides the GREATEST protection to the grantee by warranting title against all claims, both during and before the grantor's ownership?Property Ownership
- In California, a homestead declaration provides protection from forced sale by unsecured creditors up to what maximum amount for a single person?Escrow & Title
- What happens to the buyer's earnest money deposit if the buyer backs out of a purchase contract after removing all contingencies in California?Contracts
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 California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →