Property Ownership
An encumbrance on a Hawaii property that creates a financial claim against the property (such as a mortgage or judgment) is called a:
AEasement
BLien✓ Correct
CCovenant
DLicense
Explanation
A lien is a financial encumbrance — a claim against a property as security for a debt or obligation. Examples include mortgage liens, judgment liens, mechanic's liens, and tax liens.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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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