Escrow & Title
In Kansas, a 'partial release' clause in a mortgage allows the mortgagor to:
AMake partial payments on the mortgage balance
BPay off a portion of the debt to release a specific parcel from the mortgage lien while the remaining parcels remain encumbered✓ Correct
CPartially release the lender from their lending obligations
DReduce the interest rate after making a certain number of payments
Explanation
A partial release allows a developer or owner who subdivides property to pay off a portion of the debt to free individual parcels from the blanket mortgage lien as lots are sold.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
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