Finance
A satisfaction of mortgage (release deed) is recorded when:
AA mortgage is first originated
BThe borrower pays off the mortgage in full, releasing the lien from the property✓ Correct
CThe property is transferred by deed to a new owner
DThe lender approves the original loan application
Explanation
When a mortgage loan is fully paid off, the lender issues a satisfaction of mortgage (also called a release or discharge), which is recorded in the county records to clear the lien from the property's title.
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Key Terms to Know
Discount Points
Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Deed of TrustA 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.
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