Finance
A NH buyer who closes a home purchase on October 15 will receive a credit on the closing statement for prepaid interest from October 15 to October 31. This is called:
AA rate buydown
BA per diem interest credit✓ Correct
CA mortgage insurance prepayment
DAn origination fee
Explanation
Per diem interest (or prepaid interest) is charged at closing to cover the interest from the closing date to the end of the month. The first full monthly payment then covers the following month.
Related New Hampshire Finance Questions
- Which of the following best describes a 'balloon mortgage'?
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:
- A NH commercial real estate investor's loan has a 'recourse' provision. This means:
- A NH buyer who receives a gift for a down payment must provide the lender with:
- The Federal Reserve's open market operations affect NH mortgage rates primarily by:
- A NH homeowner with a $280,000 balance on their mortgage wants to take out a $40,000 home equity line of credit (HELOC). The home is worth $380,000. What is the combined LTV after the HELOC?
- A NH buyer's PITI payment includes all of the following EXCEPT:
- A NH homeowner's equity increases when:
Practice More New Hampshire Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Hampshire Quiz →