Texas Promulgated Contracts Practice Test 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

According to a Financing Addendum, the interest rate is:

Set at 6%

Negotiated between the parties

In the context of a Financing Addendum, the interest rate is negotiated between the parties involved in the transaction. This means that the lender and borrower come to an agreement on the interest rate that will be applied to the loan involved in the financing. The flexibility to negotiate allows the parties to consider various factors, such as current market conditions, the creditworthiness of the borrower, and the specifics of the loan arrangement, leading to a tailored approach that best suits their individual circumstances.

While some options mention fixed rates or regulatory influences, in real estate financing agreements, the ability to negotiate the interest rate is a common practice. It reflects the dynamic nature of lending and borrowing arrangements, where terms might vary significantly based on the parties' specific needs and financial conditions.

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Set by TREC

Determined at closing

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