1 / 10

Chapter 14 ________________ Types of Financing

Chapter 14 ________________ Types of Financing. Adjustable Rate Mortgage. Interest rate Margin Adjustment period Interest rate cap Payment cap Negative amortization Disclosures. What to look for?. ARM. Other Financing. Graduated Payment Mortgage Equity Sharing “Rich Uncle” Loan

zocha
Download Presentation

Chapter 14 ________________ Types of Financing

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 14________________Types of Financing

  2. Adjustable Rate Mortgage • Interest rate • Margin • Adjustment period • Interest rate cap • Payment cap • Negative amortization • Disclosures What to look for? ARM

  3. Other Financing • Graduated Payment Mortgage • Equity Sharing • “Rich Uncle” Loan • Package Mortgage

  4. Other Financing (continued) • Blanket Mortgage • Reverse Mortgage • Interim Loan • Construction Loan • Blended-Rate Loan • Equity Loan

  5. Affordable Housing Loans • Underwriting standards are modified to recognize different forms of credit responsibility. • Pre-purchase home buyer education. • Low down payment.

  6. Comparison of Conventional Mortgage to AIM

  7. Seller Financing • The current owner of the property agrees to accept part of the purchase price in the form of a loan (promissory note and mortgage or deed of trust) also becoming the lender in the transaction.

  8. 1st Lender Seller Buyer $20,000Debt $60,000Debt (Includes wrapped $20,000) Wraparound Mortgage

  9. Financing • Subordination • Contract for Deed • Option • Rental • Creative

  10. Key Terms • ARM • Affordable housing loan • Blanket mortgage • Construction loan • Equity sharing • GPM • Negative amortization • Option • Package mortgage • RAM • Seller financing • Wraparound mortgage

More Related