Choose the one most appropriate answer for each.
-a right, for a given period of time, to buy, sell, or lease property at present price and terms
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

An option is the right, but not the obligation, to buy or sell a property at a present price and terms for a given time period.

Answer: E
 A buy-down mortgage is a type of mortgage where the borrower pays an upfront fee to lower the interest rate on the loan, which results in lower monthly payments for a given period of time.

Answer: G
 A contract for deed is a type of financing where the seller retains legal title to the property until the buyer completes the required payments, giving the buyer the right to buy the property at present price and terms.

Answer: Q
 A reverse mortgage is a type of mortgage where elderly homeowners can borrow against the equity in their homes and receive regular payments from the lender, giving them the right to access the equity of their property for a given period of time.

Answer: T
 A wraparound mortgage is a type of financing where the seller provides a mortgage to the buyer, who makes payments to the seller, and the seller continues to make payments on the existing mortgage, which can give the buyer the right to buy the property at present price and terms.

Choose the One Most Appropriate Answer for Each