What is a 'cash-out refinance' and how does it work in Delaware?
Why Refinancing a mortgage for more than the current balance — receiving the excess as cash Is Correct
Answer B: Refinancing a mortgage for more than the current balance — receiving the excess as cash
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 Delaware Questions
- What does 'amortization schedule' show on a Delaware mortgage loan?Finance
- At a Delaware closing, the attorney's role includes:Escrow & Title
- Plottage value results from:Property Valuation
- Paired sales analysis is used in appraisal to:Property Valuation
- An investor purchases a Delaware property for $500,000 with a 25% down payment and obtains a mortgage for the balance. Closing costs are $8,000 (paid in cash). What is the investor's total cash investment at closing?Real Estate Math
- What is 'amortization' in a Delaware mortgage loan?Finance
- A Delaware property is purchased for $275,000 with 20% down. The mortgage rate is 7% annually on a 30-year loan. What is the loan amount?Real Estate Math
- A Delaware property is appraised at $310,000. The lender will loan 80% of appraised value. What is the maximum loan amount?Finance
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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 Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →