Finance
When a West Virginia lender 'locks' a mortgage interest rate for 30 days, it means:
AThe borrower is guaranteed to close within 30 days
BThe interest rate is guaranteed for 30 days, protecting the borrower from rate increases during that period✓ Correct
CThe lender can adjust the rate after 30 days without notice
DThe property cannot be shown to other buyers for 30 days
Explanation
A rate lock guarantees the borrower a specific interest rate for the lock period (typically 30, 45, or 60 days). If rates rise during the lock period, the borrower is protected.
People Also Study
Related West Virginia Questions
- In West Virginia, a mortgage that adjusts its interest rate periodically based on a financial index is called a(n):Finance
- A West Virginia borrower obtains an adjustable-rate mortgage (ARM). The interest rate on an ARM is tied to:Finance
- A West Virginia borrower who wants to pay fewer points in exchange for a higher interest rate is using:Finance
- A West Virginia buyer is comparing a 15-year mortgage vs. a 30-year mortgage at the same interest rate. The 15-year mortgage will have:Finance
- When a West Virginia property owner grants a mortgage lender a security interest in their property, the owner is the:Property Ownership
- A West Virginia buyer qualifies for a maximum monthly mortgage payment of $1,200. At an interest rate of 6% for 30 years, the payment factor is $5.99 per $1,000 of loan. What is the maximum loan amount the buyer can qualify for?Real Estate Math
- A West Virginia buyer takes out a $200,000 mortgage at 7% annual interest with a monthly payment of $1,331. How much of the first month's payment goes to principal?Real Estate Math
- In West Virginia, the primary instrument used to finance real estate and give the lender a security interest in the property is:Escrow & Title
Key Terms to Know
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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.
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.
Math Concepts
Study This Topic
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →