Finance
In Washington, home equity lines of credit (HELOCs) are secured by:
AA promissory note only
BA deed of trust on the owner's property✓ Correct
CA UCC financing statement
DThe owner's credit score only
Explanation
A HELOC is secured by a deed of trust (or mortgage) on the homeowner's property. It is a revolving line of credit that uses the home's equity as collateral, giving the lender a security interest in the real property.
Related Washington Finance Questions
- A Washington buyer borrows $400,000 at 7% annual interest. What is the interest accrued in the first month?
- Washington's consumer protection laws require mortgage lenders to provide borrowers with the Loan Estimate within 3 business days of application. If the lender provides it late, the borrower's primary remedy is:
- A Washington mortgage that requires a large lump-sum payment at the end of the loan term is called a:
- Washington borrowers using a USDA guaranteed loan benefit from:
- A Washington buyer obtains a conventional loan with a 20% down payment on a $550,000 home. What is the loan-to-value (LTV) ratio?
- In Washington, a buyer obtains a 'jumbo' mortgage. A jumbo loan is one that:
- A Washington lender who makes a qualifying mortgage (QM) under the Ability to Repay rule is presumed to have:
- A Washington lender approves a loan based on an appraised value of $520,000 at 80% LTV. The purchase price is $535,000. The maximum loan amount is based on:
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →