FRECI_13-1 - Lecture Preview Florida Real Estate Commission...

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1 Florida Real Estate Commission Course I Pre-Licensing Course for Sales Associates Session 13 – Lecture 1 Types of Mortgages and Sources of Financing Copyright, 2005 2 Lecture Preview What will you learn from this lecture? Introduce different types of mortgages Discuss a fully amortized mortgage Identify the components of a mortgage Calculate an interest payment Calculate an amortized payment Copyright, 2005 3 Vocabulary Terms Amortize Level payments Copyright, 2005 4 Types of Mortgages Fully Amortized Partially Amortized Adjustable Rate Biweekly Package Home Equity Purchase Money Mortgage Reverse Annuity Copyright, 2005 Fully Amortized Mortgage Level payments (constant amount) Includes both principal and interest Principal reduction grows slightly with each payment Eventually reaches a zero balance Typically 15 or 30-year terms “to extinguish, as a debt, by regular payments into a sinking fund” Amortize (Webster’s) Copyright, 2005 6 $100,000 (Loan amt) 30 Years
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This note was uploaded on 05/21/2011 for the course FREC 1000 taught by Professor Stallone during the Spring '08 term at University of Florida.

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FRECI_13-1 - Lecture Preview Florida Real Estate Commission...

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