Finance
In Vermont, the 'promissory note' in a mortgage transaction is the document that:
AConveys title from seller to buyer
BCreates the borrower's personal obligation to repay the debt✓ Correct
CGrants the lender a security interest in the property
DGuarantees the lender against default
Explanation
The promissory note is the borrower's personal promise to repay the loan according to specified terms (amount, interest rate, payment schedule). The mortgage or deed of trust is the security instrument that pledges the property as collateral. The note creates personal liability; the mortgage creates the lien.
Related Vermont Finance Questions
- A Vermont buyer obtains a $400,000 mortgage at 7% annual interest with a 30-year term. Using the factor of $6.65 per $1,000 borrowed, what is the estimated monthly principal and interest payment?
- A Vermont blanket mortgage covers:
- Vermont's note (promissory note) in a mortgage transaction is:
- Which Vermont agency provides below-market-rate mortgage financing to qualifying first-time homebuyers?
- Vermont's 'mortgage recording tax' refers to the fact that:
- Under TRID (TILA-RESPA Integrated Disclosure), the Closing Disclosure must be provided to the borrower at least how many business days before closing?
- Vermont's mortgage escrow account requires the lender to:
- Vermont's 'DSCR loan' (Debt Service Coverage Ratio) is common in commercial real estate and requires that:
Practice More Vermont Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Vermont Quiz →