Class 18 - What kind of mortgages?-Fixed rate, 4.971% for...

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

View Full Document Right Arrow Icon
Housing - Typical first time home buyer o Age: 32 o Annual Income Housing terms: - Mortgage: Loan - Escrow: $ w/3 rd party - Lien- right to asset - Amortize – gradual payment of principle Lending Formulas - How much can afford? o Annual salary * 2.5 - Will I quality for a loan? o Front end ratios Monthly gross income * .28 = expenditure o Back end ratio Monthly gross salary * .36 = Expenditures for housing, a Expenditiure auto and credit payments What is my down payment? - Cost of house * .20 What are points? - Points are 1% of the loan and paid to the lending agency.
Background image of page 1

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

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

Unformatted text preview: What kind of mortgages?-Fixed rate, 4.971% for 30 years (yes)-ARM variable rate-Balloon 7 years and balance-Interest only (no) Sub Prime Loan Market-Borrowers with weak credit-Large debt to income ratios House -Over condition-Heating-Foundation, pests What fees are added at clothing?-Application fees-Attorney speaks-Commissions-Appraisal Paints-Insurance -Title search-Taxes in escrow Reverse Mortgage Name 3 other sources to use leveraged savings:-Life insurance-Retirement-Home equity...
View Full Document

Page1 / 2

Class 18 - What kind of mortgages?-Fixed rate, 4.971% for...

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