Finance
In Wisconsin, which document creates a security interest in real property for a lender?
APromissory note
BMortgage✓ Correct
CDeed of trust
DLand contract
Explanation
Wisconsin uses a mortgage (not a deed of trust) as the security instrument pledging real property as collateral for a loan.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Promissory NoteA written promise to repay a loan under specified terms — the borrower's personal financial obligation in a real estate transaction.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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.
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