SHOPPING FOR A MORTGAGE
|
|
- Melissa Garrison
- 6 years ago
- Views:
Transcription
1 SHOPPING FOR A MORTGAGE The Traditional Fixed-Rate Mortgage Key characteristics: Level payments, fixed interest rate, fixed term. This mortgage is the one which most of us know, and it is still the loan most used. You make a down payment, and then agree to pay the remaining balance of the loan in equal payments over a long period, such as 20 to 30 years. Though monthly payments are level, the relative amounts of principal and interest vary. In the early years, you pay almost all interest. In the later years, most of your money goes to principal. As you pay off more of the principal and the home also increases in value, you build equity or ownership in your home. Graduated Payment Mortgage Key characteristics: Designed primarily for first-time home buyers. Your payments begin low, increase for a few years, and then level off at a higher amount. The interest rate is fixed. With this mortgage, young buyers who are good credit risks and have a promising income can often qualify with slightly less income than ordinarily required for the amount being borrowed. That s because the payments start at a level which you can afford, then rise as you count on your income to do the same in future years. Typically, the payments start below those of a traditional mortgage for the same amount, rise in the first years (up to a maximum of ten years), then level off at an amount above that of a traditional mortgage. The risk, of course, is on your income keeping up with the rise in payments. But there s no guesswork. The graduated payment mortgage will cost more over the term than a traditional one because payments in the early years don t cover all the interest owed each month. That interest is tacked onto the balance of the loan in the most commonly used form of this mortgage. In fact, the balance on the loan actually increases during the early years. (Rather than paying off, or amortizing the loan, you are making it larger a practice that s called negative amortization in the lending business.) Variations on Graduated Payment Mortgage Key characteristics: By various means, monthly payments are made easier to handle in the early years, and then increase later; the interest rate is fixed. In one variation, called the pledged account loan, some of you down payment is used to supplement early payments. Though the amount owed each month remains level, what you re required to produce out of pocket does not. Initially, part of your down payment is put into a savings account that pays you interest. Each month money is drawn out and combined with out of pocket money to make up the total payment. The amount withdrawn decreases over the years. Once the savings account dries up (typically after five years), you must come up with the entire payment out of pocket. As you can see, the money that goes into the savings account does not really work as a down payment. In fact, the total cost of the mortgage is increased by the amount that s put into the pledged savings account. However, there s no negative amortization with the pledged account mortgage. Monthly payments do cover all the interest. Adjustable Rate Mortgages Key Characteristics: Interest rates and possibly the term vary. It is potentially good if you buy when interest rates are high and you think they are going to decline. Options vary according to the lending institution. Because of that, adjustable rate mortgages (ARMs) do not all work alike. (Similar mortgages have been available under the name variable.)
2 An ARM is a mortgage which has changeable interest rates in order to reflect current market rates. Periodically, the rates are moved up or down according to an index that s beyond the control of the lender. For instance, the index might be a monitor of the average cost of mortgage money across the country or Treasury Bill rates. In order to attract consumers, some lenders offer the mortgage initially at a rate below the prevailing one on fixed rate mortgages. When interest rates are high, the ARM could be good for you because you won t be locked in over a 30 year mortgage at high rates, if, of course, rates don t drastically shoot upward. There s a good chance they ll come back down. Of course, when mortgage rates are low, you re better off with another type of mortgage. Graduated Payment Adjustable Mortgage Key characteristics: A cross between an adjustable rate mortgage and a graduated payment mortgage. Essentially, it s designed so that payments begin lower than those of a traditional mortgage, then increase for the first few years until they level off at a figure higher than that of a traditional mortgage. As with the adjustable rate mortgage just discussed, interest rates charged on the loan can be changed upward or downward as the index being used for the loan indicates. Lenders predict that the increases which might occur could be less drastic than those with a simple adjustable rate mortgage because of the graduated approach. The danger of negative amortization and thus extremely slow equity building is great. Negative amortization occurs when monthly payments don t cover the interest charged and therefore the extra money is tacked onto the principal. In essence, you re increasing your debt rather than lowering it. Ask about any limit on the total increase of the loan that s possible should you be interested in this kind of loan. Balloon Payment This type of loan starts off as though it were a conventional 25 of 30-year mortgage with a fixed interest rate and monthly installment. At the end of a specific period (i.e. 3, 5, 10 years), however, the entire amount of the loan must be paid off, although you may be given the option of refinancing the loan at the prevailing interest rate. Renegotiable Rate With this type of loan, sometimes called rollover, the lender determines a new interest rate at either 3, 4, 5 or 9 year periods. You have the option to accept or reject the new rate. If you accept, your monthly payments are adjusted. If you reject, the full unpaid balance of your mortgage becomes due. Interest rates can rise within limits and downward adjustments reflecting market conditions are mandatory. Reverse Annuity Mortgage Key characteristics: Designed primarily for older people who have paid off (or almost paid off) their mortgages and live on fixed incomes. Equity built up in the home is turned into regular payments to the owners. Increasingly, older people on fixed incomes are being forced to sell their homes in order to get more money to live on. This mortgage just the opposite of other mortgages allows these owners to turn their equity into cash while still living in the house. The owner can borrow up to a percentage (typically no more than 80 percent) of the house s current value. This money is paid to the borrower on a regular basis, usually monthly. Just the opposite of a typical mortgage, the borrower is receiving income and surrendering equity rather than making payments and building equity. Reverse annuity mortgages can work in different ways. In one approach, the lender pays an annuity (just a regular monthly payment for the term of the loan) to the home owner. During this time of payment, the debt to the borrowers in continuously rising. Interest is computed on and added to the principal each month.
3 The mortgage can have a term of a set number of years or can be due after a certain event, such as the sale of the house or death of the owner. The balance can be paid at the end of the term by financing (the house s appreciation will help some), by selling the home or, in case of death, by the estate. In another version, no debt is repaid during the term of the loan by the use of a deferred life annuity policy purchased from a life insurance company. GLOSSARY OF FINANCING TERMS AMORTIZED LOAN A loan which is paid off in equal installments during its term. ASSUMABLE MORTGAGE The purchaser takes ownership of real estate encumbered by an existing mortgage and assumes responsibility as the guarantor for the unpaid balance of the mortgage. BALLOON PAYMENT The final payment of a mortgage loan when it is larger than the regular payment; it usually extinguishes the debt. CAPITAL GAINS TAX The taxable profit derived from the sale of a capital asset. The capital gain is the difference between the sale price and the basis of the property, after making appropriate adjustments for closing costs, fix up expenses, capital improvements, allowable depreciation, etc. CLOSING COSTS The expenses incurred in the closing of a real estate or mortgage transaction. Purchaser s expenses normally include cost of title examination, premiums for title policies, survey, attorney fees and recording charges. In addition, the purchaser may have to place in escrow a sum of money to cover accrued real estate taxes and insurance. CONVENTIONAL MORTGAGE A loan neither insured by the FHA nor guaranteed by the VA. CERTIFICATE OF REASONABLE VALUE (CRV) A document (appraisal) issued by the VA establishing its opinion of maximum value. EQUITY The difference between the market value of property and the homeowner s indebtedness (mortgage). ESCROW PAYMENT That portion of a mortgagor s monthly payment held in trust by the lender to pay for taxes, hazard insurance, mortgage insurance, lease payments and other items as they become due. Known as impounds in some states.
4 EXCHANGE The trading of equity in a piece of property for the equity in another. FREDDIE MAC Nickname for Federal Home Loan Association (FHLMC), a tax-paying corporation created by Congress to support the secondary mortgages insured by FHA or guaranteed by VA, as well as conventional home mortgages. FIRM COMMITMENT A lender s agreement to make a loan to a specific borrower on a specific property. A FHA or PMI agreement to insure a loan on a specific property with a designated purchaser. INVESTOR The holder of a mortgage or the permanent lender for whom the mortgage banker services the loan. A person or institution that invests in mortgages. LEASE PURCHASE AGREEMENT The buyer makes a deposit for the future purchase of a property with the right to lease the property in the interim. LOAN COMMITMENT A written promise by a lender to make a loan under certain terms and conditions. These include interest rate, length of the loan, lender fees, annual percentage rate, mortgage and hazard insurance, and other special requirements. LOAN TO VALUE RATIO The ratio of the mortgage loan principal (amount borrowed) to the property s appraisal value (selling price). On a $100,000 home with a mortgage loan principal of $80,000, the loan to value ratio is 80%. LAND CONTRACT Pledge of real property to secure a debt by a written instrument given by the mortgagor. Should be recorded in the County Recorder s Office. MORTGAGE INSURANCE PREMIUM (PIP) The consideration paid by a mortgagor for mortgage insurance either to FHA or a PMI company. MORTGAGEE The lender of money or the receiver of the mortgage document. NOTE A written promise to pay a certain amount of money.
5 ORIGINATION FEE A fee or charge for work involved in the evaluation, preparation and submission of a proposed mortgage loan. POINT One percent of a loan amount. PREPAYMENT PENALTY A fee to the mortgagee for paying the mortgage before it becomes due. Also known as a prepayment fee or reinvestment fee. PREPAYMENT PRIVILEGE The right given a purchaser to pay all or part of a debt prior to its maturity. The mortgagee cannot be compelled to accept any payment other than those originally agreed to. PRIVATELY INSURED MORTGAGE A conventional mortgage loan on which a private mortgage insurance company protects the lender against loss. PRIVATE MORTGAGE INSURANCE (PMI) Insurance written by a private company protecting the mortgage lender against loss occasioned by a mortgage default. RENT WITH OPTION A contract which gives one the right to lease property at a certain sum with the option to purchase at a future date. SECOND MORTGAGE Junior Mortgage or Junior Lien; an additional loan imposed on property with a first mortgage, generally at a higher interest rate and shorter terms than a first mortgage. STRAIGHT LOAN A loan with periodic payments of interest only; the principal due in one lump sum upon maturity. TITLE Often used interchangeably with the word ownership. It indicates the accumulation of all rights in property; the owner s and others. TITLE INSURANCE An insurance policy which protects the insured (purchaser or lender) against loss arising from defects in the property title.
Mortgage Terms. Appraisal An estimate of the value of property, made by a qualified professional called an "appraiser".
Mortgage Terms Acceleration The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgagor (borrower), or by using the right vested
Mortgage Terms Glossary
Mortgage Terms Glossary Adjustable-Rate Mortgage (ARM) A mortgage where the interest rate is not fixed, but changes during the life of the loan in line with movements in an index rate. You may also see
Adjustment Date - The date on which the interest rate changes for an adjustable-rate mortgage (ARM).
Glossary A Adjustable Rate Mortgage - An adjustable rate mortgage, commonly referred to as an ARM, is a loan type that allows the lender to adjust the interest rate during the term of the loan. Generally,
MORTGAGE TERMINOLOGY DEFINED
MORTGAGE TERMINOLOGY DEFINED 1-year Adjustable Rate Mortgage Mortgage where the annual rate changes yearly. The rate is usually based on movements of a published index plus a specified margin, chosen by
First Time Home Buyer Glossary
First Time Home Buyer Glossary For first time home buyers, knowing and understanding the following terms are very important when purchasing your first home. By understanding these terms, you will make
Definitions. In some cases a survey rather than an ILC is required.
Definitions 1. What is the closing? The closing is a formal meeting at which both the buyer and seller meet to sign all the final documentation required for the buyer's mortgage loan. Once the closing
HOME BUYING101. 701.255.0042 www.capcu.org i
HOME BUYING101 701.255.0042 www.capcu.org i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended,
Paragon 5. Financial Calculators User Guide
Paragon 5 Financial Calculators User Guide Table of Contents Financial Calculators... 3 Use of Calculators... 3 Mortgage Calculators... 4 15 Yr vs. 30 Year... 4 Adjustable Rate Amortizer... 4 Affordability...
MORTGAGE DICTIONARY. Amortization - Amortization is a decrease in the value of assets with time, which is normally the useful life of tangible assets.
MORTGAGE DICTIONARY Adjustable-Rate Mortgage An adjustable-rate mortgage (ARM) is a product with a floating or variable rate that adjusts based on some index. Amortization - Amortization is a decrease
MORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.
MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default
Mortgage Glossary. Mortgage loans under which the interest rate is periodically adjusted based upon terms agreed to at the inception of the loan.
Adjustable Rate Mortgage (ARM): Alternative Documentation: Amortization: Annual Percentage Rate (APR): Appraisal: Appraisal Amount or Appraised Value: Appreciation: Balloon Mortgage: Bankruptcy: Cap: Cash-out
HOME BUYING101 TM %*'9 [[[ EPXEREJGY SVK i
HOME BUYING101 TM i This book is intended as a general guide to the topics discussed, and it does not deliver accounting, personal finance, or legal advice. It is not intended, and should not be used,
RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE
RESIDENTIAL MORTGAGE PRODUCT INFORMATION DISCLOSURE Whether you are buying a house or refinancing an existing mortgage, this information can help you decide what type of mortgage is right for you. You
Title Insurance Glossary
Title Insurance Glossary Abstract of Title A condensed history or summary of all transactions affecting a particular tract of land. Adjustable Rate Mortgages Mortgages with an interest rate that may change
Homebuyers Dictionary
2935 Breezewood Avenue Suite 100 Fayetteville, NC 28303 www.fayhba.org Homebuyers Dictionary ARM? GPM? PITI? You d have to be a cryptologist to figure out some of the terms buyers encounter during the
Adjustable Rate Mortgage (ARM) a mortgage with a variable interest rate, which adjusts monthly, biannually or annually.
Glossary Adjustable Rate Mortgage (ARM) a mortgage with a variable interest rate, which adjusts monthly, biannually or annually. Amortization the way a loan is paid off over time in installments, detailing
Glossary of Terms. Here are some helpful definitions to common terms.
Glossary of Terms Here are some helpful definitions to common terms. 1003 Loan application 4506 IRS form requesting copy of tax return Abstract of title A historical summary provided by a title insurance
GLOSSARY OF TERMS. Adjustment Date: The date that the interest rate changes on an adjustable-rate mortgage.
GLOSSARY OF TERMS A Acceleration: The right of the mortgagee (lender) to demand the immediate repayment of the mortgage loan balance upon the default of the mortgager (borrower), or by using the right
Mortgage Glossary A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Mortgage Glossary A B C D E F G H I J K L M N O P Q R S T U V W X Y Z adjustable-rate mortgage (ARM) A mortgage that changes interest rate periodically based upon the changes in a specified index. adjustment
Mortgage Alternatives: The Risks and Opportunities 1
Fact Sheet HE 3226 Mortgage Alternatives: The Risks and Opportunities 1 Virginia Peart, Ph.D. 2 Buying a home involves a difficult decision process. Today s mortgages are complex, and homeownership is
Home Mortgage Interest Deduction
Department of the Treasury Internal Revenue Service Publication 936 Cat.. 10426G Home Mortgage Interest Deduction For use in preparing 1998 Returns Contents Introduction... 1 Part I: Home Mortgage Interest...
Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property
REAL ESTATE BASICS Affordability Analysis An analysis of a buyer s ability to afford the purchase of a home, reviews income, liabilities, and available funds, and considers the type of mortgage a buyer
Assumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.
MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that
GLOSSARY COMMONLY USED REAL ESTATE TERMS
GLOSSARY COMMONLY USED REAL ESTATE TERMS Adjustable-Rate Mortgage (ARM): a mortgage loan with an interest rate that is subject to change and is not fixed at the same level for the life of the loan. These
HOME FINANCING GUIDE
HOME FINANCING GUIDE SECTION 1: Mortgage Loans Available Fixed Rate Mortgages A fixed rate mortgage is a home loan with a rate that remains the same over the entire term of the loan, regardless of how
Chapter 19. Residential Real Estate Finance: Mortgage Choices, Pricing and Risks. Residential Financing: Loans
Chapter 19 Residential Real Estate Finance: Mortgage Choices, Pricing and Risks 10/25/2005 FIN4777 - Special Topics in Real Estate - Professor Rui Yao 1 Residential Financing: Loans Loans are classified
Reverse Mortgage Glossary of Terms
Reverse Mortgage Glossary of Terms Acceleration Clause Adjustable Rate Annuity Appraisal Appreciation Available Principle Limit Change of Circumstance Closing Condemnation Correspondent Cost to Cure Credit
amortization The repayment of a mortgage loan by installments with regular payments to cover the principal and interest.
adjustable-rate mortgage (ARM) A mortgage whose interest rate changes periodically based on the changes in a specified index. View a list of common indices. adjustment date The date on which the interest
HOME LENDING TERMS. A payment by a borrower in excess of the scheduled principal amount due, in order to reduce the remaining balance of the loan.
Additional Principal Payment A payment by a borrower in excess of the scheduled principal amount due, in order to reduce the remaining balance of the loan. Adjustable-Rate Mortgage (ARM) An ARM is a type
Conventional Financing
Chapter 6 Conventional Financing 1 Chapter Objectives Identify the characteristics of a conventional loan. Define amortization. Identify different types of conventional loans. Discuss the use of private
Charting Your Course to Home Ownership
Charting Your Course to Home Ownership Navigating the Mortgage Process Today s home mortgage market has a variety of choices. Many home buyers feel safest choosing a conventional, standard fixed-rate mortgage
Fifth Third Home Buying Guide. A Guide to Residential Home Buying.
Fifth Third Home Buying Guide A Guide to Residential Home Buying. Important Contacts and Numbers. Use this page to record important information as you move through the homebuying process. Realtor/Builder
HOMEBUYER S MORTGAGE GUIDE
WWW.WINTRUSTMORTGAGE.COM WINTRUST.COM/MYHOME HOMEBUYER S MORTGAGE GUIDE HELPFUL INFORMATION ABOUT THE MORTGAGE PROCESS TO GUIDE YOU AS YOU PURCHASE YOUR NEW HOME. www.wintrust.com/myhome WHY WINTRUST?
Glossary of Foreclosure Fairness Mediation Terminology
Glossary of Foreclosure Fairness Mediation Terminology Adjustable-Rate Mortgage (ARM) Mortgage repaid at the rate of interest that increases or decreases over the life of the loan based on market conditions.
Different Types of Loans
Different Types of Loans All loans, no matter what they are, are either secured or unsecured. Knowing the difference can better help you understand how they work and what to expect when applying for one.
Chapter 5. Real Estate Finance Instruments. Chapter Objectives. Promissory Notes 10/11/2012
Chapter 5 Real Estate Finance Instruments 1 Chapter Objectives Contrast a financing instrument from a security instrument. Discuss advantages and disadvantages of trust deeds. Discuss advantages and disadvantages
Step-by-Step Home Mortgage Steps
1 Applicants with a good credit report will be in a stronger position to negotiate best rate and terms Your credit report is used by banks and other lending institutions to determine your creditworthiness.
Mortgage Terms. Accrued interest Interest that is earned but not paid, adding to the amount owed.
Mortgage Terms Accrued interest Interest that is earned but not paid, adding to the amount owed. Negative amortization A rise in the loan balance when the mortgage payment is less than the interest due.
GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422
GENERAL TIPS FOR BUYING/SELLING A HOME Office of the Staff Judge Advocate, MacDill Air Force Base, Florida (813) 828-4422 TYPES OF HOMES Buying a house will be one of the biggest investments one will ever
BORROWER Q&AS. 2. I'm current on my mortgage. Will the Home Affordable Refinance help me?
MAKING HOME AFFORDABLE BORROWER Q&AS 1. What is Making Home Affordable" all about? Making Home Affordable is part of President Obama's comprehensive strategy to get the housing market back on track. Through
5+ Key Components To Most Adjustable Rate Mortgages
5+ Key Components To Most Adjustable Rate Mortgages 1. Index rate The rate to which the interest rate on an adjustable rate loan is tied. One of the more popular indexes used is the 1-year U.S. Treasury
Promissory Notes and Security Instruments
Introduction Imagine buying a house and being required to pay the total price in cash. With the average price of a single-family home being so high, buying a home would be unthinkable without the practical
Dr. Debra Sherrill Central Piedmont Community College
Dr. Debra Sherrill Central Piedmont Community College 1 2 Describe the benefits and pitfalls of renting versus owning a home. List the steps required to obtain a mortgage loan. Identify mortgage options
California Land Title Association
California Land Title Association Title Consumer Series: Understanding the Language of Real Estate To the unfamiliar, it can often confuse and bewilder. Fannie Mae and Freddie Mac. ARMS and APR. Clear
A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance.
A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance. When you agree to a mortgage, you enter into a legal
Fin 4713 Chapter 6. Interest Rate Risk. Interest Rate Risk. Alternative Mortgage Instruments. Interest Rate Risk. Alternative Mortgage Instruments
Fin 4713 Chapter 6 Chapter 6 Learning Objectives Understand alternative mortgage instruments Understand how the characteristics of various AMIs solve the problems of a fixed-rate mortgage Alternative Mortgage
YOUR MORTGAGE PLANNING GUIDE. John Cavan,
YOUR MORTGAGE PLANNING GUIDE Compliments of John Cavan, TABLE OF CONTENTS This mortgage planning guide will take you through 4 easy steps to OBTAIN a MORTGAGE. 1 2 34 STEP 1 CONNECT 04 ABOUT MY SERVICES
FIRST TIME HOMEBUYERS. Canada Mortgage and Housing Corporation (CMHC) and Genworth have made it easier than ever to own the home of your dreams.
FIRST TIME HOMEBUYERS Canada Mortgage and Housing Corporation (CMHC) and Genworth have made it easier than ever to own the home of your dreams. Program Highlights Minimum down payment 5% of the appraised
L.K. Benson & Company Lyle Benson, CPA/PFS, CFP 1107 Kenilworth Dr, Suite 302 Baltimore, MD 21204 410-494-6680 lyle@lkbenson.com www.lkbenson.
L.K. Benson & Company Lyle Benson, CPA/PFS, CFP 1107 Kenilworth Dr, Suite 302 Baltimore, MD 21204 410-494-6680 lyle@lkbenson.com www.lkbenson.com Reverse Mortgages Page 1 of 6, see disclaimer on final
Chapter 15 Questions Real Estate Financing: Practice
Chapter 15 Questions Real Estate Financing: Practice 1. Kahlid has been making periodic payments of principal and interest on a loan, but the final payment will be larger than the others. This is a(n)
Overview of GNMA Reverse Mortgage Backed Securities (HMBS) Evaluations
Overview of GNMA Reverse Mortgage Backed Securities (HMBS) Evaluations April 8, 2010 Matthew Brodin, Director-Evaluated Services Lynn Barry, Manager-Structured Group Interactive Data Pricing and Reference
The Essential Guide to Understanding Your Mortgage. mortgagemoneyman.com (817) 912-4444 1
The Essential Guide to Understanding Your Mortgage mortgagemoneyman.com (817) 912-4444 1 Understanding Types of Mortgages and Eligibility Requirements Whether you are purchasing your first home or your
What You Need to Know Before Considering a. Reverse Mortgage. Fair Housing Legal Support Center & Clinic
What You Need to Know Before Considering a Reverse Mortgage Fair Housing Legal Support Center & Clinic Reverse Mortgage Pros and Cons Pros A reverse mortgage may allow senior homeowners to age in place
HOMEOWNERSHIP: Understanding What You Can Afford, Mortgages, and Closing Costs. Illinois Association of REALTORS. Springfield, IL 62701
Illinois Association of REALTORS 522 S. Fifth Street Springfield, IL 62701 www.illinoisrealtor.org www.yourillinoishome.com HOMEOWNERSHIP: Understanding What You Can Afford, Mortgages, and Closing Costs
Test 3 Spring 2015: Chapters 8 (Land Contract) through 14 and 26 Jacobus
Finance 382 Real Estate Principles and Practice Instructor: Jan E. Beran Student s Name Version A FILL IN YOUR NAME (Lastname, Firstname) WHERE INDICATED, BE SURE TO FILL IN THE CORRESPONDING BUBBLES.
The. Path. Refinancing. www.totalmortgage.com October. totalmortgage.com 877-868-2503
The Path Refinancing totalmortgage.com 877-868-2503 www.totalmortgage.com October 1 2012 The Path Refinancing Over time, many things change and need adjustment, and the reality is your home financing is
NORTH AMERICAN TITLE COMPANY Like Clockwork. www.nat.com/cfpb
NORTH AMERICAN TITLE COMPANY Like Clockwork www.nat.com/cfpb UNDERSTANDING THE NEW LOAN ESTIMATE AND CLOSING DISCLOSURE FORMS American Title, we want to make sure all of our customers have the information
The MorTgage Industry ExplaInEd
The Mortgage Industry Explained US Mortgage Corporation (NMLS ID#3901). Corporate Office is located at 201 Old Country Road, Suite 140, Melville, NY 11747; 631-580-2600 or (800) 562-6715 (LOANS15). Licensed
Your Guide To Home Financing
Your Guide To Home Financing You re buying your first home. We have an easy mortgage solution. When buying a home, the world of mortgages can be intimidating and overwhelming. The key to feeling good about
Appreciation is one way that the the difference between the market value of property and the amount owed on it increases.
Chapter 22 Buying a Home 22.1 Why Buy a Home? Vocab Market value appraised value assessed value Equity conventional loan FHA loan Trust deed escrow account discount points Loan origination fee closing
Nontraditional Mortgages Fixed Rate Products
Nontraditional Mortgages Fixed Rate Products Overview MortgageEducation.com All Rights Reserved - 1 - I. Introduction II. Buydown Mortgage A. Buydown Mortgage Features 1. Temporary Buydown 2. Permanent
Guide to Purchasing a Home
Your journey to homeownership starts at your credit union. Purchasing your first home is a big decision, and it may even seem overwhelming. Rest assured Beacon Credit Union is here to assist you in understanding
Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?
Buyer s Guide : Content Page 1: What is equity release? Page 2: Is equity release the right choice for you? Page 3: Protecting yourself If it isn t right for you, what are the alternatives? Page 4: Lifetime
Mortgages and Mortgage -Backed Securiti curi es ti Mortgage ort gage securitized mortgage- backed securities (MBSs) Primary Pri mary Mortgage Market
Mortgages and Mortgage-Backed Securities Mortgage Markets Mortgages are loans to individuals or businesses to purchase homes, land, or other real property Many mortgages are securitized Many mortgages
A Consumer s Guide to. Buying a Co-op
A Consumer s Guide to Buying a Co-op A Consumer s Guide to Buying a Co-op In the United States, more than 1.2 million families of all income levels live in homes owned and operated through cooperative
CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES
CONSUMER HANDBOOK ON ADJUSTABLE RATE MORTGAGES Federal Reserve Board Office of Thrift Supervision This booklet was originally prepared in consultation with the following organizations: American Bankers
Today, nearly half of all residential real estate lending is completed
6 C h a p t e r 6 Conventional Financing In This Chapter Today, nearly half of all residential real estate lending is completed with conventional financing programs, and there are various financing tools
Borrowing on Home Equity
ABCs of Mortgages Series Borrowing on Home Equity Smart mortgage decisions start here Table of Contents Overview 1 What are the different options? 2 1. Refinancing 3 2. Borrowing amounts you prepaid 4
Capital Choice Mortgage Solutions. Getting Started
Capital Choice Mortgage Solutions Our Philosophy: At Capital Choice Mortgage Solutions we try to do what's right for our clients one hundred percent of the time. We will keep you informed throughout the
Habitat for Humanity of Southern Brazoria County (HfHSBC) This policy defines the terms and conditions that are required in a Habitat mortgage.
Habitat for Humanity of Southern Brazoria County (HfHSBC) HfHSBC Policy No. 24 - Mortgage Policy General Principles This policy defines the terms and conditions that are required in a Habitat mortgage.
Higgins Capital Management, Inc.
Higgins Capital Management, Inc. Deborah M. Higgins President and Founder 2223 Avenida de la Playa Suite 210 La Jolla, CA 92037 800-716-6510 858-459-7451 debbie@higginscapital.com www.higginscapital.com
Chapter 13: Residential and Commercial Property Financing
Chapter 13 Outline / Page 1 Chapter 13: Residential and Commercial Property Financing Understanding the Mortgage Concept - secured vs. unsecured debt - mortgage pledge of property to secure a debt (See
Financing Residential Real Estate
Financing Residential Real Estate Chapter 1: Finance and Investment Borrowing Money to Buy a Home Investments and Returns Types of Investments Ownership Investments Debt Investments Securities Investment
The Adjustable Rate Loan, the Graduated Payment Loan, and Other Loan Arrangements
Chapter 43 The Adjustable Rate Loan, the Graduated Payment Loan, and Other Loan Arrangements INTRODUCTION When interest rates are generally stable from year to year, the fixed-rate amortized loan works
Choosing the Best Mortgage
A HOME FOR YOUR FAMILY 12 Choosing the Best Mortgage Distributed in furtherance of the Acts of Congress of May 8 and June 30, 1914. Employment and program opportunities are offered to all people regardless
Reverse Mortgages A Source of Funds for Retirement?
Reverse Mortgages A Source of Funds for Retirement? Many people make it a goal of their financial lives to invest in a home. It is a great accomplishment when that last mortgage payment is made. Can a
Glossary of Lending Terms
Glossary of Lending Terms Adjustable Rate Loan or Adjustable Rate Mortgage (ARM) A loan with an interest rate that changes during the term of the loan. The payments generally increase or decrease with
HOMEPATH BUYERS GUIDE WWW.HOMEPATH.COM
HOMEPATH BUYERS GUIDE WWW.HOMEPATH.COM Buyers Guide Buyers Guide For a Fannie Mae-owned Home Whether you re buying your first home or your fifth, the experience can be exciting, confusing, overwhelming
Quick Reference Program Summary. The following is an outline of the underwriting and closing requirements of New Hampshire Housing.
Quick Reference Program Summary The following is an outline of the underwriting and closing requirements of New Hampshire Housing. Specific Program Rules are attached to this reference. A reservation cannot
Appraiser: a qualified individual who uses his or her experience and knowledge to prepare the appraisal estimate.
Mortgage Glossary 203(b): FHA program which provides mortgage insurance to protect lenders from default; used to finance the purchase of new or existing one- to four family housing; characterized by low
Commercial Mortgage Types and Decisions
Commercial Loans vs Home Loans Fin 5413 Commercial Mortgage Types and Decisions Commercial mortgages and notes are not as standardized as home loans Although this is changing with growth in commercial
How To Get A Reverse Mortgage
Reverse Mortgage Credit Union Mortgage Association 9693-A Main Street Fairfax, VA 22031 Toll Free: (800) 231-8855 Ext. 128 Local: (703) 425-1204 Ext. 128 www.cumortgage.net Summary What is a Reverse Mortgage?
Chapter 10 6/16/2010. Mortgage Types and Borrower Decisions: Overview Role of the secondary market. Mortgage types:
Mortgage Types and Borrower Decisions: Overview Role of the secondary market Chapter 10 Residential Mortgage Types and Borrower Decisions Mortgage types: Conventional mortgages FHA mortgages VA mortgages
Lesson 15: Closing Real Estate Transactions
1 Real Estate Principles of Georgia Lesson 15: Closing Real Estate Transactions 2 Closing Closing: Final stage in real estate transaction. Also called settlement. Buyer pays seller; seller transfers title
Obtain Information from Several Lenders
ESPAÑOL Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage--whether it s a home purchase, a refinancing, or a home equity loan--is a product, just like
Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM
Summary of the Obama Administration s MAKING HOME AFFORDABLE PROGRAM Prepared By: Empire Justice Center Kevin Purcell and Salah Maker The Telesca Center for Justice One West Main Street, Suite 200 Rochester,
How to Buy and Sell Property FAST in Today s Market!
How to Buy and Sell Property FAST in Today s Market! A land contract is a written agreement between a person who has sold property ("the Seller or Vendor") and the person who bought that property ("the
Glossary of Loan Terminology
Glossary of Loan Terminology A B C D E F G H I J L M N O P Q R S T V Abstract (of Title) A historical summary of all the recorded transactions that affect the title to the property. An attorney or a title
PURCHASE MORTGAGE. Mortgage loan types
PURCHASE MORTGAGE Mortgage loan types There are many types of mortgages used worldwide, but several factors broadly define the characteristics of the mortgage. All of these may be subject to local regulation
A Glossary of Bank Terms
A Glossary of Bank Terms Below you will find key words and definitions to help you better understand the terms used in the financial services industry. ABA American Bankers Association. Account Ownership
Interest-Only Mortgage Payments and Payment-Option ARMs Are They for You?
Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency Office of Thrift Supervision Interest-Only
Obtain Information from Several Lenders
Shopping around for a home loan or mortgage will help you to get the best financing deal. A mortgage--whether it s a home purchase, a refinancing, or a home equity loan--is a product, just like a car,
Arkansas Development Finance Authority, a Component Unit of the State of Arkansas
Arkansas Development Finance Authority, a Component Unit of the State of Arkansas Combined Financial Statements and Additional Information for the Year Ended June 30, 2000, and Independent Auditors Report
Participant Guide Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum
Your Own Home Building: Knowledge, Security, Confidence FDIC Financial Education Curriculum TABLE OF CONTENTS Page To Rent or Own 1 Steps Involved in Buying a Home 2 Am I Ready to Buy a Home? 3 Patricia
Key Points: Conventional Loans:
Key Points: Conventional Loans: Less regulation and more discretion than government loans. Can be cheaper than FHA and VA because FHA requires 2 mortgage insurances and VA requires VA funding fee. Sometimes
Mortgage Fraud Home Equity Scams Choosing a Loan
Mortgage Fraud You could lose your home and your money if you borrow from unscrupulous lenders who offer you a high-cost loan based on the equity you have in your home. Certain lenders target homeowners
Loan Estimate. Loan Terms. Projected Payments. Costs at Closing. Save this Loan Estimate to compare with your Closing Disclosure.
Loan Estimate DATE ISSUED APPLICANTS PROPERTY SALE PRICE Loan Terms Save this Loan Estimate to compare with your Closing Disclosure. LOAN TERM 30 years PURPOSE Purchase PRODUCT 5 Year Interest Only, 5/3
Home Equity Loans and Lines of Credit
Delaware County Bank P.O. Box 1001 Lewis Center, OH 43035 740-657-7000 inforequest@dcb-t.com Home Equity Loans and Lines of Credit Page 1 of 5, see disclaimer on final page Home Equity Loans and Lines
Private Mortgage Insurance (PMI)
Private Mortgage Insurance (PMI) Private Mortgage Insurance (PMI) New Law Requires Lenders to Cancel PMI If you are a homeowner, you will want to be aware of a new law that establishes rights for homeowners
When calculating your monthly loan payments, the interest rate, and not the APR, is used.
FAQ on Mortgages RATE The posted interest rate is the actual rate used to calculate your monthly loan payment. The interest rate that you will be charged on your loan is set once you have completed our