Finance
In Tennessee, a 'no-cost refinance' typically means:
AThere are literally no costs associated with the refinance
BThe closing costs are rolled into the loan balance or offset by a higher interest rate✓ Correct
CThe government pays the closing costs
DThe original lender waives all fees as a loyalty benefit
Explanation
A 'no-cost' refinance doesn't eliminate costs — the costs are either added to the loan balance or offset by the borrower accepting a slightly higher interest rate. The costs are paid over time rather than upfront.
People Also Study
Related Tennessee Questions
- A Tennessee investor finances $180,000 at 7% annual interest with monthly payments of $1,198. After the first payment, what is the remaining loan balance (approximately)?Real Estate Math
- In Tennessee, 'amortization negative' means that a loan's principal balance:Finance
- The annual percentage rate (APR) on a mortgage is HIGHER than the stated interest rate because it:Finance
- A 'points' buy-down in a mortgage means the borrower pays upfront to:Finance
- In Tennessee, what document evidences the borrower's personal promise to repay a real estate loan?Finance
- A seller pays off their mortgage balance of $147,500 at closing. The closing costs paid by the seller total $8,200. The sale price is $235,000. What are the seller's net proceeds?Real Estate Math
- In Tennessee, a 'reversionary interest' means the original grantor retains:Property Ownership
- A Tennessee buyer uses the following closing cost formula: Down payment 20% + 3% in closing costs on the loan amount. If the purchase price is $375,000, what is the total cash needed at closing?Real Estate Math
Key Terms to Know
Closing Costs
Fees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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.
AmortizationThe 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.
Math Concepts
Study This Topic
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →