ADJUSTABLE / FLOATING RATE MORTGAGES
Interest Rate Changes: Indexed to other market Interest Rates (plus a Margin).
Index: LIBOR (London Inter Bank Offered Rate), U.S. Treasuries, COFI (11th district
Cost of Funds Index), Prime. The Index can be 3 mo, 6 m
FIXED RATE MORTGAGES
Capital Markets: Financial and Securities Markets, including the Mortgage Market.
Lenders as Intermediaries: Most Lenders sell the Loans they Originate into the
Secondary Mortgage Market rather than owning the Loans on their Balance S
VALUATION OF INCOME PROPERTIES - APPRAISAL
Market Value: The Price at which a willing Buyer and a willing Seller, without undue
pressure, would Buy and Sell a particular Property, as of a particular Date.
Appraisal: An estimate or opinion of Property Valu
NOTES AND MORTGAGES
Promissory Note: Document that evidences a Loan between a Borrower and a
Lender. Must include the Parties, Loan Amount, Interest Rate and Maturity Date.
Usually includes clauses relating to Amortization, Assumability or Due on Sale,
BASIC LEGAL CONCEPTS
Real Estate: Land and all things Permanently Attached thereto.
Real Property: Ownership Rights associated with Real Estate.
Personal Property: Movable things and Intangibles.
Fixtures: Are Personal Property until they are Attached to
Hossam Ahmed AlGhamdi - 12110269
Review sheet for the chapters 1&2:
1- Be sure to understand the organization and able to define it.
A deliberate arrangement of people brought together to accomplish a specific