Finance
Under Ohio mortgage law, a 'satisfaction of mortgage' should be recorded when:
AThe borrower makes the first payment
BThe loan is fully paid off, releasing the lien from the property✓ Correct
CThe property is listed for sale
DThe property is refinanced
Explanation
When a mortgage is fully repaid, the lender must record a satisfaction of mortgage (or release) with the county recorder, which removes the lien from the public record and clears the 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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
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