Escrow & Title
A lender's title insurance (mortgagee's policy) protects:
AThe borrower's equity in the property
BThe lender's interest up to the outstanding loan balance✓ Correct
CThe seller against post-closing claims
DThe title company against title defects
Explanation
A lender's title insurance policy protects the mortgage lender's interest in the property up to the outstanding loan balance. Most lenders require this policy as a condition of the mortgage loan.
People Also Study
Related Rhode Island Questions
- In Rhode Island, a 'lender's title insurance policy' protects:Escrow & Title
- An owner's title insurance policy protects:Escrow & Title
- An owner's title insurance policy in Rhode Island protects:Escrow & Title
- A mortgage that requires equal monthly payments that fully pay off both principal and interest over the loan term is called a(n):Finance
- A mortgage in Rhode Island, under the title theory, means that the lender:Property Ownership
- What does title insurance protect against in a Rhode Island real estate transaction?Escrow & Title
- A buyer obtains a 30-year fixed mortgage at 7% on a $280,000 loan. The monthly payment factor per $1,000 at 7% for 30 years is $6.65. What is the approximate monthly principal and interest payment?Real Estate Math
- A mortgage has a remaining balance of $180,000 at 5% annual interest. What is the interest portion of the first monthly payment?Real Estate Math
Key Terms to Know
Title Insurance
Insurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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.
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.
Math Concepts
Study This Topic
Practice More Rhode Island Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Rhode Island Quiz →