In a Virginia deed of trust, the borrower who pledges the property as security for the loan is known as which party?
Correct Answer
D) Trustor
In a Virginia deed of trust, the trustor is the borrower who conveys legal title to the trustee as security for the loan. The three parties are: trustor (borrower), trustee (neutral third party holding title), and beneficiary (lender). This three-party structure distinguishes the deed of trust from a two-party mortgage.
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Related Concepts
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%.
An FHA loan is a mortgage insured by the Federal Housing Administration that allows lower down payments and credit scores than conventional loans. It is designed to help first-time homebuyers and borrowers with limited resources.
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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