The maximum commission a loan broker may charge to negotiate an $8,000 hard money first trust deed that is due in two years is:
Correct Answer
C) $1,000.
On hard money first trust deeds under $30,000 with terms of three years or less, brokers may charge up to a regulated maximum; for this $8,000, two-year loan, the maximum allowed is $1,000.
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Related Topics & Key Terms
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Key Terms:
Related Concepts
An adjustable-rate mortgage (ARM) has an interest rate that changes periodically based on market conditions, typically after an initial fixed-rate period. The rate adjustment is tied to a financial index plus a margin.
Closing costs are the fees and expenses paid by the buyer and seller at the closing of a real estate transaction, beyond the purchase price. They typically range from 2-5% of the purchase price.
A conventional loan is a mortgage that is not insured or guaranteed by a government agency such as the FHA, VA, or USDA. It is originated and funded by private lenders and may be conforming or non-conforming.
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