A borrower in Anchorage obtains a $320,000 deed of trust loan at a fixed annual interest rate of 6%. The loan is interest-only for the first year. During the first full month of the loan, what is the borrower's interest payment?
Correct Answer
A) $1,600
Step 1 — Calculate annual interest: $320,000 × 6% = $320,000 × 0.06 = $19,200 per year. Step 2 — Calculate monthly interest: $19,200 ÷ 12 = $1,600 per month. The first month's interest-only payment is $1,600. This reflects how interest accrues on a deed of trust loan in Alaska, where the deed of trust is the primary security instrument under AS 34.20.070.
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Previous Question
A broker in Anchorage is holding a $15,000 earnest money deposit in her trust account. The transaction falls through and the buyer cannot be located after repeated attempts. Under Alaska law, what must the broker ultimately do with these unclaimed trust account funds?
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Under Alaska's Deed of Trust Act (AS 34.20.070–34.20.135), which of the following is NOT a required party to a deed of trust?