A Colorado seller wants to provide 'seller financing.' To avoid the SAFE Act's mortgage loan originator licensing requirements, seller financing must meet certain exemptions. One key exemption requires:
Why The seller to have owned and occupied the property and the loan to have a fixed rate or adjustable rate meeting specific criteria Is Correct
Answer B: The seller to have owned and occupied the property and the loan to have a fixed rate or adjustable rate meeting specific criteria
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.
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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
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