Escrow & Title
What is 'assumption fee' in an assumable mortgage escrow transaction in Hawaii?
AA. A fee the lender charges the new buyer to process and approve a loan assumption✓ Correct
BB. A fee charged by the escrow company for conducting the closing
CC. A penalty charged to the seller for allowing their loan to be assumed
DD. A fee paid by the buyer to the title company for issuing an assumption endorsement
Explanation
When a buyer assumes an existing mortgage, the lender typically charges an assumption fee to cover processing, underwriting the new borrower's creditworthiness, and documentation. This fee is charged by the lender to the buyer seeking to assume the loan. FHA and VA loans have statutory limits on assumption fees. The assumption fee is a closing cost for the buyer.
Related Hawaii Escrow & Title Questions
- What does 'chain of title' mean in Hawaii real estate?
- What is a preliminary title report in a Hawaii real estate transaction?
- In Hawaii, a deed of trust differs from a mortgage because:
- Which of the following is a primary function of an escrow in a real estate transaction?
- In Hawaii, who typically pays for the owner's title insurance policy?
- In Hawaii, what is a 'subordination agreement' in real estate finance?
- A Hawaii deed must contain which essential element to be valid?
- In Hawaii, the conveyance tax (documentary stamp tax) is calculated based on:
Practice More Hawaii Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Hawaii Quiz →