NC's 'Homestead Preservation Act' exempts from creditors which portion of a primary residence's equity?
Why A limited amount set by NC Constitution (currently $35,000 for homeowners under 65; $60,000 for those 65+) Is Correct
Answer B: A limited amount set by NC Constitution (currently $35,000 for homeowners under 65; $60,000 for those 65+)
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.
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Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
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.
Math Concepts
State-Specific Concepts
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