Finance
Kentucky primarily uses which instrument to secure real property loans?
ADeed of trust
BMortgage✓ Correct
CLand contract
DAssignment of rents
Explanation
Unlike states that use deeds of trust, Kentucky is a mortgage state. A mortgage creates a lien against the property to secure the loan.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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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