Finance
The note (promissory note) in a Missouri deed of trust transaction is:
AThe document that conveys title to the trustee
BThe borrower's personal promise to repay the loan✓ Correct
CThe lender's guarantee to fund the loan
DThe trustee's authorization to foreclose
Explanation
The promissory note is the borrower's personal promise to repay the loan. The deed of trust provides the real property security.
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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.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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.
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