Finance
In Ohio, which document serves as evidence of the borrower's personal obligation to repay the mortgage debt?
AThe mortgage or deed of trust
BThe promissory note✓ Correct
CThe Closing Disclosure
DThe deed to the property
Explanation
The promissory note is the borrower's personal promise to repay the debt. It is the evidence of the borrower's personal obligation.
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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.
Math Concepts
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