Choose the one most appropriate answer for each.
-an arrangement whereby a party providing financing gets a portion of the ownership
A)adjustment period
B)adjustable rate mortgage (ARM)
C)blanket mortgage
D)blended-rate loan
E)buy-down mortgage
F)carryback financing
G)contract for deed
H)equity mortgage
I)equity sharing
J)graduated payment mortgage
K)interest rate cap
L)negative amortization
M)option
N)overencumbered property
O)package mortgage
P)payment cap
Q)reverse mortgage
R)sale and leaseback
S)subordination
T)wraparound mortgage

Question

Quizplus · Accepted Answer

Equity sharing is an arrangement whereby a party providing financing gets a portion of the ownership.

Answer: F 
 Carryback financing refers to the seller of a property providing financing to the buyer, where the seller receives payments from the buyer instead of a lump sum payment.

Answer: G 
 A contract for deed is a financing arrangement where the seller finances the sale of property directly to the buyer, who makes payments to the seller until the full purchase price is paid.

Answer: T 
 A wraparound mortgage is a financing arrangement in which an existing mortgage is combined with a new mortgage created by the seller of a property, providing financing to the buyer.

Answer: P 
 A payment cap is a limit on how much the monthly payments of an adjustable-rate mortgage (ARM) can increase, even if the interest rate rises.

Choose the One Most Appropriate Answer for Each