Finance
A home equity line of credit (HELOC) in Utah is typically secured by:
AThe borrower's car
BA second deed of trust on the borrower's home✓ Correct
CAn unsecured personal guarantee
DA savings account at the lending institution
Explanation
A HELOC is a revolving credit line secured by a second deed of trust on the borrower's home equity. Interest is typically variable and the borrower draws funds as needed.
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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.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
Math Concepts
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