Escrow & Title
In Utah, when a buyer assumes an existing mortgage, they:
AAre not personally liable for the mortgage if they signed no assumption agreement
BBecome personally liable for the debt and the original borrower may also remain secondarily liable unless released✓ Correct
CAutomatically release the original borrower from all liability
DMust pay down the principal by 20% to assume the loan
Explanation
When a buyer assumes a mortgage, they become personally liable for the debt. The original borrower remains secondarily liable unless the lender issues a formal release of liability.
People Also Study
Related Utah Questions
- In Utah, when a borrower defaults on a trust deed loan, the lender typically uses:Finance
- A Utah mortgage lender who charges a higher interest rate to a borrower of a specific race, despite the borrower qualifying for a lower rate, is committing:Finance
- Vicarious liability means a principal broker in Utah may be liable for:Agency
- A Utah lender who 'redlines' in mortgage lending is:Finance
- A lender allows 43% total DTI. The buyer's gross monthly income is $9,500. They have $850/month in existing debts. What is the maximum monthly mortgage payment?Real Estate Math
- A Utah borrower who wants to lower their monthly mortgage payment can use a 'float down' option to:Finance
- A Utah buyer takes title 'subject to' an existing mortgage. This means:Escrow & Title
- In Utah, a commercial tenant who remains in possession after a lease expires without the landlord's consent is a:Property Management
Key Terms to Know
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.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Study This Topic
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →