Finance (alternative)
In Maryland, a property with a 'deed of trust' versus a 'mortgage' — in both cases, what secures the loan?
AThe borrower's personal credit only
BThe real property itself as collateral✓ Correct
CA government guarantee
DThe title company's guarantee
Explanation
Both a mortgage and a deed of trust use the real property as collateral — the borrower pledges the property to secure repayment of the loan.
Related Maryland Finance (alternative) Questions
- A Maryland adjustable-rate mortgage (ARM) has an initial rate of 4% and annual adjustment cap of 2%. After one year, if the index rises 3%, the new rate is:
- A Maryland USDA Rural Development loan is available to buyers purchasing homes in:
- What does the term 'amortization' mean in the context of a Maryland mortgage?
- In Maryland, the prepayment penalty on a residential mortgage loan with a term of 6 or fewer years:
- A Maryland 'bridge loan' is a short-term financing arrangement used by buyers to:
- A Maryland borrower with excellent credit qualifies for a conventional loan with 20% down. This borrower avoids:
- Maryland's HomeCredit (MCC) program reduces a qualifying buyer's federal tax liability by allowing them to claim a credit of up to what percentage of annual mortgage interest?
- What is the purpose of mortgage insurance (PMI or MIP) in a Maryland home purchase?
Practice More Maryland Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Maryland Quiz →