Finance
A Vermont homeowner with significant equity who needs cash for home improvements might use which loan product?
AA new purchase mortgage
BA home equity line of credit (HELOC) or home equity loan secured by the property's equity✓ Correct
CA personal unsecured loan only
DA new FHA loan
Explanation
A HELOC or home equity loan allows Vermont homeowners to borrow against the equity in their property. The interest rate is typically lower than personal loans because the loan is secured by real property.
People Also Study
Related Vermont Questions
- A Vermont property owner has a first mortgage of $180,000 and takes out a home equity line of credit (HELOC) of $50,000. The HELOC is a:Finance
- A Vermont home equity line of credit (HELOC) uses:Finance
- Vermont's reverse mortgage program (Home Equity Conversion Mortgage) allows:Finance
- A Vermont property owner has both a first mortgage and a second mortgage (home equity loan). If the property is foreclosed, which lien is paid first?Escrow & Title
- A Vermont homeowner who refinances their mortgage primarily to reduce their monthly interest payment is engaging in a:Finance
- Vermont's 'agricultural lien' allows a seller of agricultural products or inputs to claim a security interest in crops. This is relevant to Vermont real estate agents because:Property Ownership
- Vermont's 'homestead protection' in bankruptcy law allows a Vermont debtor to exempt how much equity in their principal residence from bankruptcy creditors?Property Ownership
- In Vermont, a seller's agent who learns that a buyer has been pre-approved for a higher loan amount than their offer reflects must:Agency
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.
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.
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.
Math Concepts
Study This Topic
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →