ASGN 9 - Pogodzinski Econ 166 Assignment 9 Whenever we are...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Pogodzinski Econ 166 11/29/09 Assignment 9 Whenever we are dealing with either buying or selling real estate, we must always consider and abide by real estate laws and financial institutions. Financial institutions have allowed for borrowers to take out a loan in order to purchase a home; this specific type of loan is called mortgage. In other words, a mortgage is a long-term loan secured by real estate. A mortgage is usually amortized by maturity. These loans have been designed for people to finance their purchase of homes and pay the full amount plus interest given in a term. A conventional home mortgage in the United States is when a borrower makes a 20% down payment on the loan, and decides to pay the rest of the money over a course of thirty years at a the given interest rate. The determinant of interest rates on mortgages primarily involves the market’s current long-term rates. Other factors include the credit score, equity/down payment on loan, loan terms terms, and, in some instances discount point one receives for borrowing. Furthermore, a mortgage is a legal binding contract between a between a
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/08/2010 for the course ECON 165 at San Jose State.

Page1 / 2

ASGN 9 - Pogodzinski Econ 166 Assignment 9 Whenever we are...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online