Finance
In a Virginia wrap-around mortgage (all-inclusive trust deed), the seller retains the existing mortgage and the buyer makes payments to:
AThe original lender
BThe seller, who then pays the original lender✓ Correct
CA neutral escrow agent
DThe VREB
Explanation
In a wrap-around mortgage, the seller keeps the underlying loan and the buyer makes payments to the seller at a higher rate. The seller uses part of those payments to continue paying the underlying mortgage.
Related Virginia Finance Questions
- A Virginia buyer obtains a $300,000 mortgage at a 6% annual interest rate. What is the interest due for the first month?
- A Virginia borrower who received a HELOC on their home and later wants to sell must:
- A Virginia lender's 'appraisal management company' (AMC) is used to:
- Private Mortgage Insurance (PMI) is typically required when the loan-to-value (LTV) ratio exceeds:
- Under the Home Mortgage Disclosure Act (HMDA), Virginia lenders must:
- A Virginia borrower's loan-to-value (LTV) ratio is 90%. This means:
- A Virginia homebuyer who wants to buy a $700,000 home with only 5% down would need a jumbo loan if the conforming limit in their area is:
- A Virginia home buyer receives a gift letter from a family member for the down payment. For conventional loans, this is:
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →