Finance
In Louisiana, which of the following is NOT typically a pre-paid item collected at closing?
APre-paid interest from closing date to first payment date
BHomeowner's insurance premium for the first year
CReal estate commission✓ Correct
DInitial escrow reserve for taxes and insurance
Explanation
Pre-paid items at closing include pre-paid interest, insurance premiums, and initial escrow reserves. Real estate commissions are closing costs paid to the real estate agents/brokers — not pre-paid items, though both appear on the settlement statement.
Related Louisiana Finance Questions
- An adjustable-rate mortgage (ARM) differs from a fixed-rate mortgage in that:
- In Louisiana, the 'mortgagor' in a conventional mortgage is:
- A Louisiana buyer is purchasing a $350,000 home with 10% down. The lender requires PMI. The PMI rate is 0.5% of the loan amount annually. What is the monthly PMI premium?
- In Louisiana, a 'purchase money mortgage' is a mortgage given by the buyer to the seller as:
- Which type of loan program is specifically designed to help low- to moderate-income buyers in rural Louisiana with 100% financing?
- In Louisiana, a mortgage that is 'underwater' means:
- A Louisiana property seller offers to take back a second mortgage for part of the purchase price. This technique is called:
- An FHA loan in Louisiana differs from a conventional loan primarily because:
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →