Finance
Iowa's 'equity of redemption' allows a mortgagor (borrower) to:
ADemand the lender reduce the interest rate
BRedeem the mortgaged property by paying off the full debt at any time before the foreclosure sale is confirmed✓ Correct
CTransfer the mortgage to another property
DConvert the mortgage to a land contract automatically
Explanation
Equity of redemption is the borrower's right in Iowa to redeem (save) mortgaged property at any point before the foreclosure is final by paying all amounts owed. Iowa also provides a statutory right of redemption after the foreclosure sale.
People Also Study
Related Iowa Questions
- An Iowa property goes through foreclosure. After the sheriff's sale, a former owner may redeem the property within the statutory redemption period by:Escrow & Title
- Iowa's redemption period after a judicial foreclosure sheriff's sale allows the defaulting borrower to:Finance
- What is the Iowa redemption period after a judicial foreclosure sale?Finance
- Iowa's deed in lieu of foreclosure allows a defaulting borrower to:Finance
- An Iowa buyer offers $262,500 for a home. The seller counters at $275,000. They agree to split the $12,500 difference evenly. What is the final sale price?Real Estate Math
- Which type of co-ownership in Iowa allows spouses to each hold an undivided interest with no right of survivorship?Property Ownership
- An Iowa borrower with a $180,000 mortgage balance wants to calculate their equity in a home appraised at $245,000. What is the equity?Finance
- An Iowa property has a first mortgage, a home equity loan, and a judgment lien. In what order are these claims typically paid at a sale?Escrow & Title
Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
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.
Math Concepts
Study This Topic
Practice More Iowa Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Iowa Quiz →