In a Mortgage Loan, the Borrower Always Creates Two Documents

question 20

Multiple Choice

In a mortgage loan, the borrower always creates two documents: a note and a mortgage. Which of the following pieces of information is provided in the mortgage?

• A) How the interest rate is to be computed.
• B) Whether the borrower has the right to prepay the principal during the term of the loan, and any prepayment penalties that would be incurred as a result.
• C) Whether the borrower is released from liability for fulfillment of the contract.
• D) An unambiguous description of the property that is being pledged as collateral for the loan.

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