Finance
In a Florida mortgage, the 'promissory note' is the document that:
APledges the property as collateral for the loan
BCreates the personal obligation to repay the debt and states the loan terms✓ Correct
CTransfers title to the lender
DReleases the borrower from the mortgage upon payoff
Explanation
The promissory note is the borrower's personal promise to repay the debt. It states the loan amount, interest rate, payment terms, and due dates. The mortgage (or deed of trust) is the separate instrument that pledges the property as collateral.
Related Florida Finance Questions
- Which type of mortgage allows the borrower to receive monthly payments from the lender, typically available to Florida homeowners aged 62 or older?
- An adjustable-rate mortgage (ARM) in Florida has a 'cap' of 2/6. This means:
- Under the Home Mortgage Disclosure Act (HMDA), lenders must:
- A Florida buyer's pre-approval letter from a lender:
- A Florida borrower's credit score falls into the 'subprime' category. This typically means the borrower will receive:
- Under RESPA (Real Estate Settlement Procedures Act), a 'kickback' or referral fee paid between settlement service providers is:
- A Florida borrower has a 'convertible ARM' mortgage. This feature allows the borrower to:
- Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) differs from the interest rate because the APR:
Practice More Florida Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Florida Quiz →