Finance
In Massachusetts, a 'purchase money mortgage' is best described as:
AA mortgage obtained from a bank to purchase the property
BSeller financing where the seller takes back a mortgage as part of the purchase price✓ Correct
CA home equity line of credit
DA bridge loan from a private lender
Explanation
A purchase money mortgage is seller financing where the seller accepts a promissory note and mortgage from the buyer as part of the sale proceeds. The seller effectively acts as the lender. Purchase money mortgages are common when conventional financing is unavailable or to close valuation gaps.
Related Massachusetts Finance Questions
- A Massachusetts USDA Rural Development loan is available for properties located:
- What is the purpose of a Massachusetts homebuyer's 'rate lock'?
- The 'loan-to-value ratio' (LTV) is calculated as:
- A 'bridge loan' in Massachusetts real estate is used to:
- The 'secondary mortgage market' refers to:
- A Massachusetts buyer obtains a $350,000 mortgage at 6.5% interest. What is the approximate first month's interest payment?
- The Closing Disclosure (CD) required by TRID must be provided to the borrower at least how many business days before closing?
- RESPA (Real Estate Settlement Procedures Act) prohibits:
Practice More Massachusetts Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Massachusetts Quiz →