We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byKari Stockett
Modified over 7 years ago
Chapter 11 ________________ Lending Practices © 2010 by Cengage Learning
© 2010 Cengage Learning o Term loan – interest payments only until due. o Amortized loan – regular equal payments for life of loan including both principal & interest. o Balloon loan – any loan that has a final payment larger than any of the previous. o Partially amortized loan – series of amortized payments with a balloon payment at maturity. Loans
© 2010 Cengage Learning Repaying a 6-year, $1,000 Loan
© 2010 by Cengage Learning 9% Interest per Year on the Loan
© 2010 by Cengage Learning Balance Owed Each Year of the Loan
© 2010 by Cengage Learning Amortization Table: Monthly Payment per $1,000 of Loan
© 2010 by Cengage Learning Balance Owing on a $1,000 Amortized Loan
© 2010 Cengage Learning The relationship between the amount the lender is willing to loan and the market value of the property. Market value = $100,000 Loan = $80,000 What is the loan-to-value ratio? 80% Loan-to-Value
© 2010 Cengage Learning Equity – the difference between the value of the property and outstanding debt. Points – one percent of the loan amount. Origination fee – fee lender charges for making loan usually stated in terms of a percentage of loan amount. Discount points – lender’s charge to raise the return on the loan usually stated as a percentage of the loan amount.
© 2010 Cengage Learning Insures loans UFMIP Anyone qualified Rate negotiable Points 3-5% down 97-95% L-T-V Guarantees loans Funding fee Veterans only Rate negotiable Points No down payment 100% L-T-V FHA VA VA / FHA Comparison
© 2010 Cengage Learning Owner occupied 1-4 family dwellings Refinancing allowed Assumption allowed (with approval) VA / FHA Similarities
© 2010 Cengage Learning VA ◦ http://www.homeloans.va.gov/ http://www.homeloans.va.gov/ FHA ◦ https://entp.hud.gov/idapp/html/hicostlook.cfm https://entp.hud.gov/idapp/html/hicostlook.cfm Conv ◦ http://www.fanniemae.com/aboutfm/loanlimits.jhtml?p=About+Fannie+Mae&s=Loa n+Limits http://www.fanniemae.com/aboutfm/loanlimits.jhtml?p=About+Fannie+Mae&s=Loa n+Limits Loan Limits Info
© 2010 Cengage Learning Private Mortgage Insurance PMI Insures lenders against losses Mortgage Insurance
© 2010 Cengage Learning Amortized loan Balloon loan Conventional loans Equity FHA Impound account Loan origination fee Loan-to-value ratio Maturity PITI PMI Point Principal UFMIP VA Key Terms
VA Loans The Basics. Who Qualifies for a VA Loan? Active Duty Service Members Veterans National Guard Reserves ***Subject to time on duty ***
Residential Mortgage Loans
Business Math, Eighth Edition Cleaves/Hobbs © 2009 Pearson Education, Inc. Upper Saddle River, NJ All Rights Reserved 15.1 Mortgage Payments Find.
Chapter 14 Mortgage Default Insurance, Foreclosure, and Title Insurance.
UNDERWRITING AND FINANCING RESIDENTIAL PROPERTIES Chapter Objectives
W ELCOME TO U NIT 8 Mortgages Finding the Monthly Mortgage Payment The amortization of a loan is when the repayment of a loan in equal installments, are.
Key Terms: Mortgage: a document that makes property security for the repayment of debt Mortgagee: the party receiving the mortgage, the lender Mortgagor:
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved McGraw-Hill/Irwin Slide 1 CHAPTER EIGHT UNDERWRITING AND FINANCING RESIDENTIAL PROPERTIES.
Unit 8 Seminar: Mortgages Professor Otis D. Jackson
Florida Real Estate Principles, Practices & Law 38th Edition
South-Western Publishing©2002 By Charles J. Jacobus Real Estate Principles Ninth Edition Real Estate: An Introduction to the Profession Ninth Edition South-Western.
Financing Residential Real Estate Lesson 6: Basic Features of a Residential Loan.
Chapter 10 Residential Mortgage Types and Borrower Decisions Real Estate FIN 331 Spring 2014.
Chapter 6: Residential Financial Analysis
Debt 1. Interest rate: Annual Percentage Rate APR 2.
©2011 Cengage Learning.
Chapter 14 Personal Financial Management © 2008 Pearson Addison-Wesley. All rights reserved.
CHAPTER 9 MORTGAGE MARKETS. Copyright© 2003 John Wiley and Sons, Inc. The Unique Nature of Mortgage Markets Mortgage loans are secured by the pledge of.
McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved CHAPTER8CHAPTER8 CHAPTER8CHAPTER8 Underwriting and Financing Residential Properties.
Chapter 08: Underwriting and Financing Residential Properties McGraw-Hill/Irwin Copyright © 2011 by the McGraw-Hill Companies, Inc. All rights reserved.
© 2022 SlidePlayer.com Inc. All rights reserved.