A balloon rider, a pre-payment penalty rider and a second home rider may all be part of:

The correct answer is found in the context of what each of these riders pertains to within real estate financing. A balloon rider, a prepayment penalty rider, and a second home rider are all provisions that can be included within a deed of trust.

A deed of trust is a legal document that secures a loan by transferring the title of a property to a third-party trustee until the loan is paid off. When additional clauses or riders are attached to a deed of trust, they provide specific conditions related to the loan. For example:

• A balloon rider specifies that the loan will have a large final payment after a series of smaller payments, which can impact how a borrower plans their financing.

• A prepayment penalty rider outlines any fees that may apply if the borrower pays off the loan early, which can affect the decision-making process regarding refinancing or selling the property.

• A second home rider is relevant when the property serves as a second residence, which may involve different conditions under the loan agreement.

Understanding how these riders integrate within the deed of trust allows borrowers and lenders to clearly define their rights and obligations under the loan, making the deed of trust the correct context for these terms.