Which security instrument does Wisconsin law recognize for residential real estate transactions to secure a mortgage loan?
Correct Answer
D) Mortgage, creating a lien on the borrower's property
Wisconsin is a mortgage state, not a deed-of-trust state. Under Wisconsin law, the standard security instrument for real estate loans is a mortgage, which creates a lien on the borrower's property while the borrower retains title. The lender holds a lien interest, not title.
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Related Topics & Key Terms
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Related Concepts
A VA loan is a mortgage guaranteed by the Department of Veterans Affairs available to eligible veterans, active-duty service members, and surviving spouses. It offers no down payment and no private mortgage insurance requirements.
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.
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