A Texas property owner with a deed of trust loan pays off the loan in full. Under Texas Property Code, what should the lender do regarding the deed of trust?
Correct Answer
C) The lender must file a release of lien with the county clerk within 60 days of full payment
Under Texas Property Code §12.014, when a loan secured by a deed of trust is paid in full, the lender must execute and file a release of lien with the county clerk within 60 days of full payment. Failure to do so can result in liability for damages.
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Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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A fixed-rate mortgage has an interest rate that remains constant for the entire term of the loan, resulting in equal monthly principal and interest payments throughout the life of the mortgage.
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