DISCLAIMER: Copyright: 2013

Save this PDF as:

Size: px
Start display at page:

Download "DISCLAIMER: Copyright: 2013"

Transcription

1 DISCLAIMER: This publication is intended for EDUCATIONAL purposes only. The information contained herein is subject to change with no notice, and while a great deal of care has been taken to provide accurate and current information, UBC, their affiliates, authors, editors and staff (collectively, the "UBC Group") makes no claims, representations, or warranties as to accuracy, completeness, usefulness or adequacy of any of the information contained herein. Under no circumstances shall the UBC Group be liable for any losses or damages whatsoever, whether in contract, tort or otherwise, from the use of, or reliance on, the information contained herein. Further, the general principles and conclusions presented in this text are subject to local, provincial, and federal laws and regulations, court cases, and any revisions of the same. This publication is sold for educational purposes only and is not intended to provide, and does not constitute, legal, accounting, or other professional advice. Professional advice should be consulted regarding every specific circumstance before acting on the information presented in these materials. Copyright: 2013 by the UBC Real Estate Division, Sauder School of Business, The University of British Columbia. Printed in Canada. ALL RIGHTS RESERVED. No part of this work covered by the copyright hereon may be reproduced, transcribed, modified, distributed, republished, or used in any form or by any means graphic, electronic, or mechanical, including photocopying, recording, taping, web distribution, or used in any information storage and retrieval system without the prior written permission of the publisher.

2 LESSON 7 Mortgage Loan Repayment Plans Note: Selected readings can be found under "Online Readings" on your Course Resources webpage. Assigned Reading 1. UBC Real Estate Division BUSI 221 Course Workbook. Vancouver: UBC Real Estate Division. Lesson 7: Mortgage Loan Repayment Plans 2. UBC Real Estate Division Real Estate Finance in a Canadian Context. Vancouver: UBC Real Estate Division. Chapter 9: Mortgage Loan Repayment Plans Recommended Reading 1. Reverse Mortgages: CanEquity Mortgage Rate History: "Fixed Rates vs. Variable Rates" Woolwich: Mortgages from Barclays Shared Appreciation Mortgages Haurant, S. September "Shared appreciation mortgage customers could sue". The Guardian Seniors' Lending Centre. "How Does a Canadian Reverse Mortgage Work?". seniorslendingcentre.com 6. Carrick, Rob. "For the cheapest mortgage, go variable". The Globe and Mail. December 3, Financial Consumer Agency of Canada. "Paying Off Your Mortgage Faster". acfc.gc.ca Learning Objectives After completing this lesson, students should be able to: 1. discuss borrower and lender objectives in mortgage financing; 2. evaluate various mortgage repayment plans introduced by lenders; 3. describe and perform calculations on interest accruing loans, interest only loans, straight line principal reduction loans, and constant blended payment repayment schemes; 7.1

3 Lesson 7 4. explain how payment frequency can impact the amortization on a loan; 5. describe common features of variable rate mortgages and summarize their advantages and disadvantages; 6. analyze VRMs with amortization period adjustments, payment adjustments, and outstanding balance adjustments; 7. calculate payments and outstanding balances on "teaser rate" VRMs; 8. describe graduated payment mortgages and calculate a GPM's payments; 9. describe sinking fund assisted mortgages and perform basic calculations related to them; 10. describe the advantages and disadvantages of reverse mortgages and perform basic calculations related to them; 11. explain and calculate how participation loans and shared appreciation mortgages can increase lender's yield; and 12. explain how inflation affects mortgages and describe how a price level adjusted mortgage addresses inflation. Instructor's Comments In this lesson, we examine the wide variety of ways that mortgage loans can be structured to meet the needs of both borrowers and lenders. Borrowers are primarily concerned with affordability, while lenders are primarily concerned with balancing return on investment, capital risk, and income risk. By varying the terms of the loans, the needs of each can be met for a variety of different lending situations. These mortgage repayment plans range from very basic interest only or interest accruing loans, to the commonplace constant payment and variable rate mortgages, and on to some unusual and complex innovative arrangements such as graduated payment or shared appreciation loans. Each of the mortgage repayment plans presented has been developed to achieve a specific purpose, for lenders, borrowers, or both. In examining each repayment plan, we look at the underlying reasons for their introduction before delving into the associated calculations. Our goal is to go beyond the technical applications of these repayment plans, look at why they exist, and critically analyze their success in achieving the intended objectives. There are many creative and diverse ways to structure mortgage loans and there are innumerable variations to be invented. 7.2

4 Mortgage Loan Repayment Plans Review and Discussion Questions 1. In an attempt to meet the requirements of both borrowers and lenders, a number of different repayment schemes have been developed. Explain when a borrower would prefer each of the following types of repayments schemes for mortgage loans, and discuss how the lender's risk is affected in each case: (a) (b) (c) An interest only mortgage loan A graduated payment mortgage loan A straight principal reduction loan 2. Recently, Kevin negotiated a pure graduated payment mortgage in the amount of $100,000. The loan is written at an annual interest rate of 12.78%, with weekly compounding, and has monthly payments calculated over a 20-year amortization period. Payments are to grow at 5% per annum, compounded weekly. (a) (b) Kevin is preparing his budget for the year and would like to know what his payments will be in the: (i) 6 th month (ii) 12 th month (iii) 24 th month As well, Kevin would like to know the month in which the payment on his GPM is at least equal to the payment on a standard fully amortized mortgage. 3. An innovative lender has agreed to grant a residential borrower a price level adjustment mortgage (PLAM) with the following terms: the initial loan amount is to be $120,000 and the mortgage is fully amortized with annual payments in 5 years. The interest rate will be 5% per annum, compounded annually; however, all payments and outstanding balances are to be adjusted each year according to the annual rate of inflation. The expected inflation rates are: Lender's Expectation Borrower's Expectation Year for Inflation for Inflation 1 8% 8% 2 9% 8% 3 10% 7% 4 10% 6% 5 12% 6% (a) (b) Based on the lender's expected inflation rates, calculate the amount of each annual payment for the PLAM and create an amortization schedule similar to the one outlined in this chapter. Based on the borrower's expected inflation rates, calculate the amount of each annual payment for the PLAM and create an amortization schedule similar to the one outlined in this chapter. 7.3

5 Lesson 7 4. A borrower arranges for a sinking fund assisted mortgage loan at a rate of 5.5% per annum, compounded semi-annually with a 25 year amortization period and 5 year term. The mortgage has a face value of $55,000 but the borrower is only advanced $50,000. The remaining $5,000 is to be placed in a fund earning interest at 3.5% per annum, compounded annually, and is to be withdrawn by constant monthly withdrawals over a five-year period, such that no balance remains after 60 months. (a) (b) (c) (d) Calculate the monthly payments on the mortgage. Calculate the amount of the monthly withdrawals from the savings account. (Hint: calculate these withdrawals as you would the payments on any regular fully amortized mortgage loan.) Calculate the net monthly payment on the mortgage during the first 60 months. Determine how much the payments on the sinking fund assisted mortgage loan are reduced relative to those required on a $50,000 conventional mortgage loan also at 5.5% per annum, compounded semi-annually, and with a 25-year amortization period. 5. Carolyn has arranged a reverse annuity mortgage that provides $950 at the end of each month. The mortgage bears interest at 7% per annum, compounded semi-annually. The lender will provide these payments until the amount owing reaches $120,000, at which time a "regular" mortgage must be arranged to amortize the accumulated debt. How many complete payments will be forwarded? 6. A lender is prepared to grant a loan to finance the purchase of an industrial building. The lender is willing to advance $750,000 at 10% per annum, compounded semi-annually to be repaid by monthly payments and calculated on a 25-year amortization period. The lender is also to receive 6% of the monthly net operating income. If the present annual net operating income is $105,000 and it remains constant for 5 years, what yield will the lender receive if the mortgage has a 5-year term? Express the yield as a nominal rate with semi-annual compounding. 7. A lender offers a loan in the amount of $240,000, which is to be fully amortized over 25 years with monthly payments. The loan bears interest at 6% per annum, compounded semi-annually, but the lender also wants to receive 22% of all increases in the value of the property when it is sold. The property is presently worth $300,000. What price must the property be sold for at the end of 5 years if the lender is to earn an effective annual rate of 8% per annum on the loan? 7.4

6 Mortgage Loan Repayment Plans ASSIGNMENT 7 CHAPTER 9: Mortgage Repayment Plans Marks: 1 per question 1. Consider the following statements about interest only loans: A. Interest only loans are attractive to borrowers because there is no need to make periodic payments. B. Real estate developers often prefer this type of loan because financing payments are kept to a minimum when they need their resources to finance construction. C. Lenders often approve these loans because a longer period of repayment reduces risk. D. Interest only loans are never fully repaid because they accrue interest indefinitely. E. Lenders are able to lessen the amount of income risk associated with a loan when they agree to accept interest only payments. Which of the above statements are TRUE? (1) Only statements B and E are true. (2) Only statements A, B, and C are true. (3) Only statements B, C, and E are true. (4) None of the above statements are true. 2. On an interest accruing loan: (1) the interest earned on the outstanding principal is paid periodically as charged. (2) no payments of interest and no repayments of principal are due until maturity. (3) a longer term reduces the risk to the lender. (4) a constant amount of principal is repaid every interest compounding period. 3. An interest only loan in the amount of $350,000 was issued January 1, three years ago. The interest rate charged on the loan is 6% per annum, compounded semi-annually with semi-annual payments. If the term of the loan is 3 years, what amount will be due and payable on January 1, this year? (1) $10,500 (2) $21,000 (3) $350,000 (4) $360,500 ***Assignment 7 continues on next page*** 7.5

7 Lesson 7 4. There are three innovative mortgage repayment schemes discussed in the course manual: Graduated Payment Mortgages (GPM); Variable Rate Mortgages (VRM); and Reverse Mortgages (RM). Which of these would be the most appropriate to recommend in each of the following situations? A. Grania has just retired from 30 years of teaching in Richmond and wishes to supplement her pension income. She owns and occupies a reasonably expensive waterfront property in Vancouver. B. Mike and Sarah have just graduated from school and want to purchase a house and start a family. However, their current low income does not allow them to meet the payments required for a large enough loan to purchase their dream home. They expect their income to increase quickly in the near future. C. George and Angela have been saving for a long time and now want to invest their savings in a mortgage loan. However, they are very concerned about locking their investment in at current interest rates because rates may rise in the future. (1) A = GPM; B = VRM; C=RM (2) A = VRM; B = GPM; C=RM (3) A = RM; B = GPM; C=VRM (4) A = RM; B = VRM; C=GPM 5. Which of the following statements regarding alternative repayment and refinancing methods is/are FALSE? A. To a borrower, inflation can cause a serious problem known as "wilting". B. In graduated payment mortgages, payments are increased during the loan term. C. In a variable rate mortgage, the interest rate is changed periodically but the required payment is never changed. D. From the borrower's perspective, the reverse mortgage allows a means by which the equity rich mortgagor may postpone selling his/her residence. (1) Only statement B is false. (2) Only statements A and C are false. (3) Only statements A, C, and D are false. (4) All of the above statements are false. 6. Kenji and Tricie are looking to buy their first home in Nanaimo. They have been saving money for a long time but they will need a mortgage loan to help with the purchase. They believe that current interest rates will decrease in the future. Given the information presented, which of these mortgage options would be the most appropriate to recommend in this situation? (1) Graduated Payment Mortgage (2) Sinking Fund Assisted Mortgage (3) Reverse Mortgage (4) Variable Rate Mortgage 7.6 ***Assignment 7 continues on next page***

8 Mortgage Loan Repayment Plans 7. Mr. Jones, a senior citizen, would like to improve his current pension with some additional income. As a result, he initiated a reverse mortgage that will help supplement his income by adding an additional $900 per month on the security of his $300,000 home. The mortgage is written at 8% per annum, compounded semi-annually. The outstanding balance is not to exceed 45% of the market value of the home at the time the loan was written. What is the maximum contractual term the loan may have? (1) The loan term must not exceed 105 years. (2) The loan term must not exceed 9 years. (3) The loan term must not exceed 104 months. (4) The loan term must not exceed 2 years, as this is the longest reverse mortgage contract allowed by the BC Mortgage Broker's Act. 8. A $265,000 variable rate mortgage was written at 9.5% per annum, compounded semi-annually, to be amortized over 25 years with monthly payments rounded to the next higher dollar. The mortgage contract specified that the interest rate could be adjusted, on each anniversary of the mortgage to the current market rate. Two years later, the market rate decreased to 8.5% per annum, compounded semi-annually. Calculate the required payments, rounded to the next higher dollar, after the second year, assuming the amortization period is not to be extended and that the contract specified variable payments are allowed. (1) $2,116 (2) $2,141 (3) $1,967 (4) $2, Straight line principal reduction loans are: (1) attractive to most borrowers. (2) useful where the borrower expects an increase in income over time. (3) beneficial to individuals drawing near to retirement and expecting a significant drop in income and purchasing power. (4) common in real estate. 10. In a constant payment blended payment repayment scheme: (1) the interest portion of the payment gradually decreases and the amount to principal increases. (2) the early payments are usually comprised largely of principal with little interest being paid. (3) interest risk is maximized. (4) the outstanding balance will always to zero at the end of the term. 11. Partially amortized constant payment mortgages: (1) are the most common form of mortgage repayment in the United States. (2) have payments set to repay the whole of the debt over the loan's amortization period. (3) have the loan's amortization set for a shorter duration than the contractual term. (4) are rarely used in Canada. ***Assignment 7 continues on next page*** 7.7

9 Lesson Which of the following statements about variable rate mortgages are TRUE? A. Variable rate mortgages are popular for individuals who are risk-adverse. B. Borrowers have the advantage of lower interest costs when mortgage rates stay flat or decline. C. Variable rate mortgages allow lenders to better match assets and liabilities, reducing interest rate risk. D. For variable rate mortgages, interest rate changes are reflected in one or more changes to the amortization period, the repayment schedule, or the outstanding balance. (1) All of the above statements are true. (2) Only statements A, B, and C are true. (3) Only statements A, C, and D are true. (4) Only statements B, C, and D are true. 13. Which of the following statements about graduated payment mortgages is TRUE? A. GPM payments are constant over the initial term of the mortgage. B. Early payments on a GPM are typically lower than payments on a standard blended rate repayment loan. C. In a GPM, the total indebtedness of the borrower often continues to grow until the gradually increasing periodic payments become large enough to pay all interest charged in a payment period and make some contribution to debt repayment. D. GPMs represent a high degree of capital risk unless extremely large loan-to-value ratios are used. (1) All of the above statements are true. (2) Only statements A and B are true. (3) Only statements B and C are true. (4) Only statements A and D are true. THE NEXT THREE (3) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A borrower has arranged a sinking fund assisted mortgage (SFAM) at a rate of 8% per annum, compounded monthly. This loan will be amortized over 20 years, a 5-year term, and monthly payments. The face value of the mortgage is written at $250,000 and the amount advanced to the borrower is $200,000. The amount of the bonus deposit ($50,000) is placed in an interest bearing account at a rate of 5% per annum, compounded monthly. Constant monthly withdrawals will be made over the 5-year period which will deplete the fund. 14. Calculate the amount of the SFAM payment. (1) $2, (2) $1, (3) $1, (4) $1, ***Assignment 7 continues on next page***

10 Mortgage Loan Repayment Plans 15. Calculate the amount of the monthly withdrawal. (1) $1, (2) $ (3) $ (4) $ What is the difference between the net payment and the payment on a standard constant blended payment mortgage at a rate of 8% per annum, compounded monthly (based on a 20-year amortization with monthly payments)? (1) There is no difference in payments (2) $ (3) $1, (4) $ Which of the following statements are TRUE? A. Under CHIP, homeowners can receive up to 50% of the value of their home with the specific amount to be based on the homeowner's age, the location of the property, the type of home, and the home's current appraised value. B. Since reverse mortgages are rising debt loans, it is important that seniors' children or estate also understand the process involved in a reverse mortgage because an inheritance can be substantially reduced upon repayment of the debt. C. The PLAM scheme presents great risk to borrowers, with a large and possibly unwarranted assumption that borrowers' income will increase with inflation. D. In a zero inflationary environment, the nominal payment and "real" payment on a standard constant payment mortgage will be the same. (1) Only statements A, B, and C are true. (2) Only statements B and D are true. (3) Only statements A, C, and D are true. (4) All of the above statements are true. 18. An institutional lender is offering a shared appreciation mortgage (SAM) to a home owner. The borrower wants to obtain a $275,000 mortgage loan. The interest rate on the mortgage is set at 7.5% per annum, compounded monthly and payable with monthly payments over a 25-year amortization. In addition, the lender will receive 20% of any increase in property value. The participation is to be payable whenever the property is sold or, if the property is not sold within 6 years, then the property is deemed to be sold after 6 years. The lender agrees to grant the mortgage against the property which has a current market value of $350,000 (and both lender and borrower agree to this amount). If the market value at the end of 6 years is $475,000, calculate the expected yield that the lender will earn on this investment, expressed as an annual rate, compounded monthly (rounded to six decimal places). (1) % (2) % (3) % (4) % ***Assignment 7 continues on next page*** 7.9

11 Lesson 7 THE NEXT TWO (2) QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION: A lender has recently approved a $300,000 participation loan at a rate of 7% per annum, compounded quarterly. This loan will have a 15-year amortization and quarterly payments, rounded up to the next higher dollar. In addition to the regular quarterly payment, the lender will receive 10% of the quarterly NOI. Assume that the NOI is distributed evenly throughout the year. 19. If the current annual NOI is $100,000 and is expected to remain at this level for the duration of a 3- year term, calculate the lender's yield, expressed as an annual rate with quarterly compounding (rounded to six decimal places). (1) % (2) % (3) % (4) % 20. Assume that the current annual NOI will remain at $100,000 per annum for 3 years, then will increase to $115,000 and remain at that level for the next three years. What will happen to the lender's yield? (1) The lender's yield will increase (2) The lender's yield will decrease. (3) The lender's yield will be unchanged. (4) It is impossible to determine what will happen to the lender's yield. 20 Total Marks Planning Ahead Go to Project 2 and read what is required. There are a series of in-depth mortgage finance calculations required. You may wish to review these at the same time you are working on this assignment ***End of Assignment 7***

DISCLAIMER: Copyright: 2013

DISCLAIMER: Copyright: 2013 DISCLAIMER: This publication is intended for EDUCATIONAL purposes only. The information contained herein is subject to change with no notice, and while a great deal of care has been taken to provide accurate

More information

SOCIETY OF ACTUARIES FINANCIAL MATHEMATICS. EXAM FM SAMPLE QUESTIONS Interest Theory

SOCIETY OF ACTUARIES FINANCIAL MATHEMATICS. EXAM FM SAMPLE QUESTIONS Interest Theory SOCIETY OF ACTUARIES EXAM FM FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS Interest Theory This page indicates changes made to Study Note FM-09-05. January 14, 2014: Questions and solutions 58 60 were

More information

Introduction to the Hewlett-Packard (HP) 10BII Calculator and Review of Mortgage Finance Calculations

Introduction to the Hewlett-Packard (HP) 10BII Calculator and Review of Mortgage Finance Calculations Introduction to the Hewlett-Packard (HP) 10BII Calculator and Review of Mortgage Finance Calculations Real Estate Division Sauder School of Business University of British Columbia Introduction to the Hewlett-Packard

More information

Fully Amortized Loan: Fixed Rate This loan is the easiest payment to calculate since the payment stays the same throughout the term of the loan.

Fully Amortized Loan: Fixed Rate This loan is the easiest payment to calculate since the payment stays the same throughout the term of the loan. SECTION THREE: TYPES AND EXAMPLES OF LOANS This Section on types of loans, provides the opportunity to begin calculating actual loan payments. A basic understanding of the use of a financial calculator

More information

Reverse Mortgages A Source of Funds for Retirement?

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

More information

SOCIETY OF ACTUARIES FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS

SOCIETY OF ACTUARIES FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS SOCIETY OF ACTUARIES EXAM FM FINANCIAL MATHEMATICS EXAM FM SAMPLE QUESTIONS This page indicates changes made to Study Note FM-09-05. April 28, 2014: Question and solutions 61 were added. January 14, 2014:

More information

Fin 4713 Chapter 6. Interest Rate Risk. Interest Rate Risk. Alternative Mortgage Instruments. Interest Rate Risk. Alternative Mortgage Instruments

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

More information

Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA

Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA Managing Home Equity to Build Wealth By Ray Meadows CPA, CFA, MBA About the Author Ray Meadows is the president of Berkeley Investment Advisors, a real estate brokerage and investment advisory firm. He

More information

BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES

BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES BUYING YOUR FIRST HOME: THREE STEPS TO SUCCESSFUL MORTGAGE SHOPPING MORTGAGES June 2015 Cat. No.: FC5-22/3-2015E-PDF ISBN: 978-0-660-02848-4 Her Majesty the Queen in Right of Canada (Financial Consumer

More information

Time Value of Money. Work book Section I True, False type questions. State whether the following statements are true (T) or False (F)

Time Value of Money. Work book Section I True, False type questions. State whether the following statements are true (T) or False (F) Time Value of Money Work book Section I True, False type questions State whether the following statements are true (T) or False (F) 1.1 Money has time value because you forgo something certain today for

More information

Real Estate. Refinancing

Real Estate. Refinancing Introduction This Solutions Handbook has been designed to supplement the HP-2C Owner's Handbook by providing a variety of applications in the financial area. Programs and/or step-by-step keystroke procedures

More information

2 The Mathematics. of Finance. Copyright Cengage Learning. All rights reserved.

2 The Mathematics. of Finance. Copyright Cengage Learning. All rights reserved. 2 The Mathematics of Finance Copyright Cengage Learning. All rights reserved. 2.3 Annuities, Loans, and Bonds Copyright Cengage Learning. All rights reserved. Annuities, Loans, and Bonds A typical defined-contribution

More information

HOME BUYING101. 701.255.0042 www.capcu.org i

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,

More information

Module 5: Interest concepts of future and present value

Module 5: Interest concepts of future and present value Page 1 of 23 Module 5: Interest concepts of future and present value Overview In this module, you learn about the fundamental concepts of interest and present and future values, as well as ordinary annuities

More information

HOME LOAN OPTIMISER. Call 6234 6400. Email info@lendme.net.au. Visit www.lendme.net.au HOW TO GET THE BEST OUT OF YOUR HOME LOAN

HOME LOAN OPTIMISER. Call 6234 6400. Email info@lendme.net.au. Visit www.lendme.net.au HOW TO GET THE BEST OUT OF YOUR HOME LOAN HOME LOAN OPTIMISER HOW TO GET THE BEST OUT OF YOUR HOME LOAN Visit www.lendme.net.au 2 3 CONTENTS Choose the right loan 3 Seek a mortgage broker to stay informed with competitive products 8 Maximize the

More information

SHOPPING FOR A MORTGAGE

SHOPPING FOR A MORTGAGE 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

More information

Chapter 22: Borrowings Models

Chapter 22: Borrowings Models October 21, 2013 Last Time The Consumer Price Index Real Growth The Consumer Price index The official measure of inflation is the Consumer Price Index (CPI) which is the determined by the Bureau of Labor

More information

Appraisal A written analysis prepared by a qualified appraiser and estimating the value of a property

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

More information

HOME BUYING101 TM %*'9 [[[ EPXEREJGY SVK i

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,

More information

Chapter F: Finance. Section F.1-F.4

Chapter F: Finance. Section F.1-F.4 Chapter F: Finance Section F.1-F.4 F.1 Simple Interest Suppose a sum of money P, called the principal or present value, is invested for t years at an annual simple interest rate of r, where r is given

More information

Dick Schwanke Finite Math 111 Harford Community College Fall 2013

Dick Schwanke Finite Math 111 Harford Community College Fall 2013 Annuities and Amortization Finite Mathematics 111 Dick Schwanke Session #3 1 In the Previous Two Sessions Calculating Simple Interest Finding the Amount Owed Computing Discounted Loans Quick Review of

More information

300 Chapter 5 Finance

300 Chapter 5 Finance 300 Chapter 5 Finance 17. House Mortgage A couple wish to purchase a house for $200,000 with a down payment of $40,000. They can amortize the balance either at 8% for 20 years or at 9% for 25 years. Which

More information

LESSON 6. Real Estate Investment Analysis and Discounting

LESSON 6. Real Estate Investment Analysis and Discounting LESSON 6 Real Estate Investment Analysis and Discounting Note: Selected readings can be found under "Online Readings" on your Course Resources webpage Assigned Reading 1. Real Estate Division. 2009. Foundations

More information

Present Value Concepts

Present Value Concepts Present Value Concepts Present value concepts are widely used by accountants in the preparation of financial statements. In fact, under International Financial Reporting Standards (IFRS), these concepts

More information

Finance CHAPTER OUTLINE. 5.1 Interest 5.2 Compound Interest 5.3 Annuities; Sinking Funds 5.4 Present Value of an Annuity; Amortization

Finance CHAPTER OUTLINE. 5.1 Interest 5.2 Compound Interest 5.3 Annuities; Sinking Funds 5.4 Present Value of an Annuity; Amortization CHAPTER 5 Finance OUTLINE Even though you re in college now, at some time, probably not too far in the future, you will be thinking of buying a house. And, unless you ve won the lottery, you will need

More information

CHAPTER 6. Accounting and the Time Value of Money. 2. Use of tables. 13, 14 8 1. a. Unknown future amount. 7, 19 1, 5, 13 2, 3, 4, 6

CHAPTER 6. Accounting and the Time Value of Money. 2. Use of tables. 13, 14 8 1. a. Unknown future amount. 7, 19 1, 5, 13 2, 3, 4, 6 CHAPTER 6 Accounting and the Time Value of Money ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems 1. Present value concepts. 1, 2, 3, 4, 5, 9, 17, 19 2. Use

More information

House Rich and Cash Poor: Ways to Unlock Your Home s Value

House Rich and Cash Poor: Ways to Unlock Your Home s Value House Rich and Cash Poor: Ways to Unlock Your Home s Value Avenidas Housing Conference, March 10, 2012 Barbara Krimsky Binder, CFP, BKB Financial Advisors Does This Describe Your Situation? - You bought

More information

BUSI 121 Foundations of Real Estate Mathematics

BUSI 121 Foundations of Real Estate Mathematics Real Estate Division BUSI 121 Foundations of Real Estate Mathematics SESSION 2 By Graham McIntosh Sauder School of Business University of British Columbia Outline Introduction Cash Flow Problems Cash Flow

More information

Policies, Procedures and Guidelines

Policies, Procedures and Guidelines Policies, Procedures and Guidelines Complete Policy Title: Guaranteed Housing Loans to Faculty and Staff Approved by: Board of Governors Date of Original Approval(s): Policy Number (if applicable): Date

More information

Practice Problems. Use the following information extracted from present and future value tables to answer question 1 to 4.

Practice Problems. Use the following information extracted from present and future value tables to answer question 1 to 4. PROBLEM 1 MULTIPLE CHOICE Practice Problems Use the following information extracted from present and future value tables to answer question 1 to 4. Type of Table Number of Periods Interest Rate Factor

More information

Time Value of Money. Nature of Interest. appendix. study objectives

Time Value of Money. Nature of Interest. appendix. study objectives 2918T_appC_C01-C20.qxd 8/28/08 9:57 PM Page C-1 appendix C Time Value of Money study objectives After studying this appendix, you should be able to: 1 Distinguish between simple and compound interest.

More information

PURCHASE MORTGAGE. Mortgage loan types

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

More information

National Policy Statement 29 Mutual Funds Investing in Mortgages SECTION III INVESTMENT POLICY SECTION IV DISCLOSURE

National Policy Statement 29 Mutual Funds Investing in Mortgages SECTION III INVESTMENT POLICY SECTION IV DISCLOSURE National Policy Statement 29 Mutual Funds Investing in Mortgages SECTION I SECTION II APPLICABILITY DEFINITIONS SECTION III INVESTMENT POLICY SECTION IV DISCLOSURE National Policy Statement 29 Mutual Funds

More information

Copyright 2009 Pearson Education Canada

Copyright 2009 Pearson Education Canada The consequence of failing to adjust the discount rate for the risk implicit in projects is that the firm will accept high-risk projects, which usually have higher IRR due to their high-risk nature, and

More information

Conventional Financing

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

More information

Mathematics. Rosella Castellano. Rome, University of Tor Vergata

Mathematics. Rosella Castellano. Rome, University of Tor Vergata and Loans Mathematics Rome, University of Tor Vergata and Loans Future Value for Simple Interest Present Value for Simple Interest You deposit E. 1,000, called the principal or present value, into a savings

More information

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.

Accounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for. A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe

More information

Finite Mathematics. CHAPTER 6 Finance. Helene Payne. 6.1. Interest. savings account. bond. mortgage loan. auto loan

Finite Mathematics. CHAPTER 6 Finance. Helene Payne. 6.1. Interest. savings account. bond. mortgage loan. auto loan Finite Mathematics Helene Payne CHAPTER 6 Finance 6.1. Interest savings account bond mortgage loan auto loan Lender Borrower Interest: Fee charged by the lender to the borrower. Principal or Present Value:

More information

Mortgage Terms Glossary

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

More information

The Adjustable Rate Loan, the Graduated Payment Loan, and Other Loan Arrangements

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

More information

, plus the present value of the $1,000 received in 15 years, which is 1, 000(1 + i) 30. Hence the present value of the bond is = 1000 ;

, plus the present value of the $1,000 received in 15 years, which is 1, 000(1 + i) 30. Hence the present value of the bond is = 1000 ; 2 Bond Prices A bond is a security which offers semi-annual* interest payments, at a rate r, for a fixed period of time, followed by a return of capital Suppose you purchase a $,000 utility bond, freshly

More information

Compound Interest Formula

Compound Interest Formula Mathematics of Finance Interest is the rental fee charged by a lender to a business or individual for the use of money. charged is determined by Principle, rate and time Interest Formula I = Prt $100 At

More information

THE TAX-FREE SAVINGS ACCOUNT

THE TAX-FREE SAVINGS ACCOUNT THE TAX-FREE SAVINGS ACCOUNT The 2008 federal budget introduced the Tax-Free Savings Account (TFSA) for individuals beginning in 2009. The TFSA allows you to set money aside without paying tax on the income

More information

Check off these skills when you feel that you have mastered them.

Check off these skills when you feel that you have mastered them. Chapter Objectives Check off these skills when you feel that you have mastered them. Know the basic loan terms principal and interest. Be able to solve the simple interest formula to find the amount of

More information

Reverse Mortgage Counseling Checklist

Reverse Mortgage Counseling Checklist Reverse Mortgage Counseling Checklist Have these items available for your counseling session... - Loan Comparison Page The calculator loan results is an estimate of available reverse mortgage programs

More information

Introduction to Real Estate Investment Appraisal

Introduction to Real Estate Investment Appraisal Introduction to Real Estate Investment Appraisal Maths of Finance Present and Future Values Pat McAllister INVESTMENT APPRAISAL: INTEREST Interest is a reward or rent paid to a lender or investor who has

More information

Future Value Sinking Fund Present Value Amortization. P V = P MT [1 (1 + i) n ] i

Future Value Sinking Fund Present Value Amortization. P V = P MT [1 (1 + i) n ] i Math 141-copyright Joe Kahlig, 15C Page 1 Section 5.2: Annuities Section 5.3: Amortization and Sinking Funds Definition: An annuity is an instrument that involves fixed payments be made/received at equal

More information

Frequently Asked Questions

Frequently Asked Questions Frequently Asked Questions 1. What is a reverse mortgage? 2. How does a reverse mortgage differ from a home equity loan? 3. What are the advantages of a reverse mortgage? 4. How much money can I get? 5.

More information

Click Here to Buy the Tutorial

Click Here to Buy the Tutorial FIN 534 Week 4 Quiz 3 (Str) Click Here to Buy the Tutorial http://www.tutorialoutlet.com/fin-534/fin-534-week-4-quiz-3- str/ For more course tutorials visit www.tutorialoutlet.com Which of the following

More information

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?

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

More information

Borrowing on Home Equity

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

More information

Lesson 13: Applying for a Mortgage Loan

Lesson 13: Applying for a Mortgage Loan 1 Real Estate Principles of Georgia Lesson 13: Applying for a Mortgage Loan 2 Choosing a Lender Types of lenders Types of lenders include: savings and loans commercial banks savings banks credit unions

More information

Assist. Financial Calculators. Technology Solutions. About Our Financial Calculators. Benefits of Financial Calculators. Getting Answers.

Assist. Financial Calculators. Technology Solutions. About Our Financial Calculators. Benefits of Financial Calculators. Getting Answers. Assist. Financial s Technology Solutions. About Our Financial s. Helping members with their financial planning should be a key function of every credit union s website. At Technology Solutions, we provide

More information

Appendix C- 1. Time Value of Money. Appendix C- 2. Financial Accounting, Fifth Edition

Appendix C- 1. Time Value of Money. Appendix C- 2. Financial Accounting, Fifth Edition C- 1 Time Value of Money C- 2 Financial Accounting, Fifth Edition Study Objectives 1. Distinguish between simple and compound interest. 2. Solve for future value of a single amount. 3. Solve for future

More information

CHAPTER 6. Accounting and the Time Value of Money. 2. Use of tables. 13, 14 8 1. a. Unknown future amount. 7, 19 1, 5, 13 2, 3, 4, 7

CHAPTER 6. Accounting and the Time Value of Money. 2. Use of tables. 13, 14 8 1. a. Unknown future amount. 7, 19 1, 5, 13 2, 3, 4, 7 CHAPTER 6 Accounting and the Time Value of Money ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems 1. Present value concepts. 1, 2, 3, 4, 5, 9, 17 2. Use of

More information

Enhance Your Financial Security

Enhance Your Financial Security Enhance Your Financial Security With a Home Equity Conversion Mortgage Many homeowners across the nation have chosen a Home Equity Conversion Mortgage (HECM) to help them meet financial and personal goals.

More information

Reverse Mortgage Is it right for you?

Reverse Mortgage Is it right for you? Reverse Mortgage Is it right for you? Reverse Mortgages are being hyped as a tremendous tool for retirement income. This type of mortgage uses part of the equity in a home as collateral. A Reverse Mortgage,

More information

GENERAL MATH PROBLEM CATEGORIES AND ILLUSTRATED SOLUTIONS MEASUREMENT STANDARDS WHICH MUST BE MEMORIZED FOR THE BROKER TEST

GENERAL MATH PROBLEM CATEGORIES AND ILLUSTRATED SOLUTIONS MEASUREMENT STANDARDS WHICH MUST BE MEMORIZED FOR THE BROKER TEST Chapter 17 Math Problem Solutions CHAPTER 17 GENERAL MATH PROBLEM CATEGORIES AND ILLUSTRATED SOLUTIONS MEASUREMENT STANDARDS WHICH MUST BE MEMORIZED FOR THE BROKER TEST Linear Measure 12 inches = 1 ft

More information

Finance 197. Simple One-time Interest

Finance 197. Simple One-time Interest Finance 197 Finance We have to work with money every day. While balancing your checkbook or calculating your monthly expenditures on espresso requires only arithmetic, when we start saving, planning for

More information

Simple Interest. and Simple Discount

Simple Interest. and Simple Discount CHAPTER 1 Simple Interest and Simple Discount Learning Objectives Money is invested or borrowed in thousands of transactions every day. When an investment is cashed in or when borrowed money is repaid,

More information

APPLICATION FOR BROKERAGE LICENCE Corporation or Partnership

APPLICATION FOR BROKERAGE LICENCE Corporation or Partnership Please complete all sections as indicated. Please print clearly. PART A APPLICANT INFORMATION APPLICATION FOR BROKERAGE LICENCE Corporation or Partnership Full legal name of corporation or partnership

More information

MORTGAGE TERMINOLOGY DEFINED

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

More information

AMP KNOWLEDGE DOMAINS DETAILED TOPIC SUMMARY

AMP KNOWLEDGE DOMAINS DETAILED TOPIC SUMMARY TECHNICAL INDUSTRY KNOWLEDGE Residential Mortgage Underwriting from a Lender s Perspective (AMP1) Brokers must have a comprehensive understanding of the mortgage underwriting process, including the importance

More information

The following is an article from a Marlboro, Massachusetts newspaper.

The following is an article from a Marlboro, Massachusetts newspaper. 319 CHAPTER 4 Personal Finance The following is an article from a Marlboro, Massachusetts newspaper. NEWSPAPER ARTICLE 4.1: LET S TEACH FINANCIAL LITERACY STEPHEN LEDUC WED JAN 16, 2008 Boston - Last week

More information

PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE..

PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE.. PROPERTY PAYS FOR ITS OWNER: REVERSE MORTAGAGE.. Getting into old age without proper financial support can be a very bad experience. No regular incomes, with rising cost of living can make life tough;

More information

Words to Know When Buying a Home

Words to Know When Buying a Home Words to Know When Buying a Home Adjustable mortgage interest rate: With an adjustable rate, both the interest rate and the mortgage payment vary, based on market conditions. Amortization: Length of time

More information

Understanding Financial Statements. For Your Business

Understanding Financial Statements. For Your Business Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

More information

Fin 5413 CHAPTER FOUR

Fin 5413 CHAPTER FOUR Slide 1 Interest Due Slide 2 Fin 5413 CHAPTER FOUR FIXED RATE MORTGAGE LOANS Interest Due is the mirror image of interest earned In previous finance course you learned that interest earned is: Interest

More information

REVIEW MATERIALS FOR REAL ESTATE ANALYSIS

REVIEW MATERIALS FOR REAL ESTATE ANALYSIS REVIEW MATERIALS FOR REAL ESTATE ANALYSIS 1997, Roy T. Black REAE 5311, Fall 2005 University of Texas at Arlington J. Andrew Hansz, Ph.D., CFA CONTENTS ITEM ANNUAL COMPOUND INTEREST TABLES AT 10% MATERIALS

More information

14.4 Mortgage Loans: Additional Topics

14.4 Mortgage Loans: Additional Topics 14.4 Mortgage Loans: Additional Topics A mortgage loan sometimes involves costs in addition to interest charges. In this section, you will learn how to incorporate these additional costs into an overall

More information

AMP BROKER EDUCATION STREAM

AMP BROKER EDUCATION STREAM Use the topic summaries below to evaluate your knowledge level within each knowledge domain. The National Competency Exam questions are based on these topics and sub-topics. The optional AMP courses are

More information

Reverse Mortgage Information Guide

Reverse Mortgage Information Guide Reverse Mortgage Information Guide Table of Contents FHA Reverse Mortgages 3 Common Misconceptions about Reverse Mortgages 4 How the Program Works 4 Benefits of a HECM loan 4 HECM vs. Traditional Mortgage

More information

Homebuyers Dictionary

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

More information

Synthesis of Financial Planning

Synthesis of Financial Planning P 7A R T Synthesis of Financial Planning 1. Tools for Financial Planning Budgeting (Chapter 2) Planned Savings (Chapter 3) Tax Planning (Chapter 4) 2. Managing Your Liquidity Bank Services (Chapter 5)

More information

Debt Freedom. Primerica Canada Debt Freedom System

Debt Freedom. Primerica Canada Debt Freedom System Debt Freedom Primerica Canada Debt Freedom System To receive a SMART Loan referral fee, the new associate must introduce the client to the certified field trainer to make the referral. New associates must

More information

AMP NON-BROKER EDUCATION STREAM

AMP NON-BROKER EDUCATION STREAM Use the topic summaries below to evaluate your knowledge level within each knowledge domain. The National Competency Exam questions are based on these topics and sub-topics. The optional AMP courses are

More information

The Law of First Impressions A Practical Guide to Mortgage Applicants

The Law of First Impressions A Practical Guide to Mortgage Applicants The Law of First Impressions A Practical Guide to Mortgage Applicants Increased Importance of Borrower Financial Statements For Commercial Real Estate Financing Robert T. Gibney Real estate investors prepare

More information

Annuities and Sinking Funds

Annuities and Sinking Funds Annuities and Sinking Funds Sinking Fund A sinking fund is an account earning compound interest into which you make periodic deposits. Suppose that the account has an annual interest rate of compounded

More information

Choosing the Best Mortgage

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

More information

Outstanding mortgage balance

Outstanding mortgage balance Using Home Equity There are numerous benefits to owning your own home. Not only does it provide a place to live, where you can decorate as you want, but it also provides a source of wealth. Over time,

More information

PART C *14.4 Mortgage Loans: Additional Topics

PART C *14.4 Mortgage Loans: Additional Topics PART C *14.4 Mortgage Loans: Additional Topics A mortgage loan sometimes involves costs in addition to interest charges. In this section you will learn how to incorporate these additional costs into an

More information

Example. L.N. Stout () Problems on annuities 1 / 14

Example. L.N. Stout () Problems on annuities 1 / 14 Example A credit card charges an annual rate of 14% compounded monthly. This month s bill is $6000. The minimum payment is $5. Suppose I keep paying $5 each month. How long will it take to pay off the

More information

Home Mortgage Interest Deduction

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...

More information

Equity Finance Mortgage (EFM)

Equity Finance Mortgage (EFM) Introducing the award-winning Equity Finance Mortgage (EFM) Best New Product of the Year 2007 Best New Product of the Year 2008 What is an EFM? An Equity Finance Mortgage (EFM) is an award-winning home

More information

e C P M 1 0 5 : P o r t f o l i o M a n a g e m e n t f o r P r i m a v e r a P 6 W e b A c c e s s

e C P M 1 0 5 : P o r t f o l i o M a n a g e m e n t f o r P r i m a v e r a P 6 W e b A c c e s s e C P M 1 5 : P o r t f o l i o M a n a g e m e n t f o r P r i m a v e r a P 6 W e b A c c e s s Capital Budgeting C o l l a b o r a t i v e P r o j e c t M a n a g e m e n t e C P M 1 5 C a p i t a l

More information

>Most investors spend the majority of their time thinking and planning

>Most investors spend the majority of their time thinking and planning Generating Retirement Income using a Systematic Withdrawal Plan SPECIAL REPORT >Most investors spend the majority of their time thinking and planning around how best to save for retirement. But once you

More information

WELCOME. To the Wonderful World Of Reverse Mortgages

WELCOME. To the Wonderful World Of Reverse Mortgages WELCOME To the Wonderful World Of Reverse Mortgages Reverse Mortgage Loans Borrowing Against Your Home Basic Questions: 1. Do you really need a reverse mortgage? -- Why are you interested in these loans?

More information

Understanding the mortgage prepayment charge

Understanding the mortgage prepayment charge Understanding the mortgage prepayment charge When choosing the type of mortgage you want, there are many factors you need to consider. Do you want a short- or long-term mortgage? Do you want a fixed or

More information

ALL YOU NEED TO KNOW.

ALL YOU NEED TO KNOW. LIFETIME MORTGAGE LIFETIME MORTGAGES ALL YOU NEED TO KNOW 1 ALL YOU NEED TO KNOW. 2 LIFETIME MORTGAGES ALL YOU NEED TO KNOW CONTENTS 1. IntrODUCTION 2. AbOUT lifetime mortgages 3. FeaturES of our lifetime

More information

Statistical Models for Forecasting and Planning

Statistical Models for Forecasting and Planning Part 5 Statistical Models for Forecasting and Planning Chapter 16 Financial Calculations: Interest, Annuities and NPV chapter 16 Financial Calculations: Interest, Annuities and NPV Outcomes Financial information

More information

Appendix. Time Value of Money. Financial Accounting, IFRS Edition Weygandt Kimmel Kieso. Appendix C- 1

Appendix. Time Value of Money. Financial Accounting, IFRS Edition Weygandt Kimmel Kieso. Appendix C- 1 C Time Value of Money C- 1 Financial Accounting, IFRS Edition Weygandt Kimmel Kieso C- 2 Study Objectives 1. Distinguish between simple and compound interest. 2. Solve for future value of a single amount.

More information

Government mortgage rescue scheme What will it mean for me and my family?

Government mortgage rescue scheme What will it mean for me and my family? Government mortgage rescue scheme What will it mean for me and my family? What is mortgage rescue? Mortgage rescue is help that the Government is offering if: you are struggling to keep up with your mortgage

More information

Chadwick s. Equity Release

Chadwick s. Equity Release c Independent Chadwick s Financial Advisers Equity Release Contents Chadwick s IFA Page 4 Equity Release Page 5 Lifetime Mortgages Page 6 Home Reversion Schemes Page 7 Considerations Pages 8&9 Safe Guards

More information

ICASL - Business School Programme

ICASL - Business School Programme ICASL - Business School Programme Quantitative Techniques for Business (Module 3) Financial Mathematics TUTORIAL 2A This chapter deals with problems related to investing money or capital in a business

More information

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co.

Equity Release Guide. Helping you make the right decision. nationwide service all lenders available personal visits. www.therightequityrelease.co. Equity Release Guide 0800 612 5749 www.therightequityrelease.co.uk Helping you make the right decision nationwide service all lenders available personal visits 1 Welcome to The Right Equity Release Who

More information

Accommodation Bond Loans

Accommodation Bond Loans Accommodation Bond Loans Banksia Mortgages Limited ABN 36 087 342 238 Australian Credit Licence Number 227733 www.banksiagroup.com.au Investments & Loans About the Fund Manager Banksia Mortgages Limited

More information

Real Property Act (Manitoba)

Real Property Act (Manitoba) Real Property Act (Manitoba) Set of Standard Charge Mortgage Terms Residential (Variable Rate) A C K N O W L E D G M E N T The undersigned, the Mortgagor(s) named in a Mortgage of Land to [insert name

More information

Your Assets: Financing and Refinancing Properties

Your Assets: Financing and Refinancing Properties The Business Library Resource Report #35 Your Assets: Financing and Refinancing Properties Personal, Investment, and Business Properties! Basic Analysis of How and When! Fixed vs. Variable Interest Rate!

More information

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014

Help to Buy Buyers Guide. Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 Help to Buy Buyers Guide Homes and Communities Agency http://www.homesandcommunities.co.uk/helptobuy August 2014 What is Help to Buy? Help to Buy is equity loan assistance to home buyers from the Homes

More information

Deferred payment agreements April 2015

Deferred payment agreements April 2015 Deferred payment agreements April 2015 This leaflet explains how a deferred payment agreement may help you when you move to a care home What is a deferred payment? A deferred payment is when the council

More information