Florida Real Estate Practice Exam

What is the loan with Taylor Bank & Trust considered for Phyllis and Maury?

1. First mortgage

2. Home equity line of credit

3. Junior mortgage

4. Subordinate mortgage

The correct answer is: First mortgage

This is because a first mortgage is a loan that has priority over all other mortgages against a property, including any other mortgage with Taylor Bank & Trust. Option B, a home equity line of credit, is a type of loan that allows homeowners to borrow against the equity in their home, but it is not specifically through Taylor Bank & Trust and may not be considered a first mortgage. Option C, a junior mortgage, is a type of mortgage that has a lower priority than a first mortgage and is typically taken out in addition to a first mortgage. This would not be the case for Phyllis and Maury's loan with Taylor Bank & Trust. Option D, a subordinate mortgage, is another term for a junior mortgage and similarly would not have priority over the loan with Taylor Bank & Trust. Therefore, the first mortgage option is the most accurate description of the loan for Phyllis and Maury