Finance
In Kansas, a 'hard money loan' in real estate typically features:
ABelow-market interest rates and flexible terms
BShort terms, high interest rates, and asset-based lending (primarily on property value, not borrower creditworthiness)✓ Correct
CGovernment guarantees and low down payments
D30-year amortization like conventional loans
Explanation
Hard money loans are short-term, high-interest-rate loans from private lenders based primarily on the property's value as collateral rather than the borrower's credit score — commonly used by real estate investors.
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Key Terms to Know
Amortization
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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.
Math Concepts
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