Which of the following terms are found in mortgage loan contracts to protect the lender from financial loss?

Question

Quizplus · Accepted Answer

All of the given choices are commonly found in mortgage loan contracts to protect the lender from financial loss. Collateral is a property or asset that can be seized by the lender if the borrower defaults on the loan. A down payment is the amount of money a borrower pays upfront towards the purchase price, reducing the loan amount and risk for the lender. Private mortgage insurance (PMI) is a type of insurance that protects the lender in case the borrower defaults on the loan. Therefore, all the given choices are important for protecting the lender's financial interest.

Which of the Following Terms Are Found in Mortgage Loan