A 'participation mortgage' in NC commercial real estate allows the lender to:
Why Share in a portion of the property's income or appreciation in addition to receiving interest Is Correct
Answer B: Share in a portion of the property's income or appreciation in addition to receiving interest
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related North Carolina Questions
- Which type of mortgage allows the borrower to pay only interest during the loan term, with the full principal due at maturity?Finance
- A buyer secures a 30-year fixed mortgage on a $350,000 NC home with 10% down at 7% annual interest. The loan amount is:Real Estate Math
- A NC lender's 'origination fee' on a mortgage loan represents:Finance
- A 'second mortgage' or 'home equity loan' in NC is characterized as:Finance
- Discount points on a mortgage loan are used to:Finance
Key Terms to Know
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More North Carolina Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →