Real Estate notes 2024 (20)

Western Governors University **We aren't endorsed by this school
Nov 3, 2023
Uploaded by BaronNightingalePerson957 on
- If paid separately, after a home is purchased your lender will make an escrow account to pay for your taxes + insurance) Private Mortgage Insurance (PMI) * calculates into the monthly payment - Correct Ans - Insurance payable to lender/trustee for a pool of securities that may be required when taking out mortgage loan Simple: Policy that protects a lender in case a buyer can't make payments (20% down)/or on time Here u might be required to pay for it if you have a conventional loan. PMI protects the lender not you if you stop making payments on your loan. Mortgage Types - Correct Ans - Convention: loan secured by real property through use of mortgage note (Non-government mortgages) * Can be fixed rate or adjusted rate loans - Fannie Mae - Freddie Mac - Regular lenders (banks) - Conventional Conforming: Loan up to $417,000 - High cost areas (High- balance conforming loan): $417,000- $625,5000 -Jumbo Loan: Loan over $625,500 (not purchased by Fannie & Freddie) * loan amounts sometimes change every Jan 1 Government: - FHA mortgages: backed loans that usually require lower down payment and may have a lower interest rate (have high balance loan not Jumbo loan) - VA mortgages: guaranteed by federal gov - Suny Mae FHA Loan - Correct Ans - loan insured by fed gov - Best for first time homebuyer/ people who lack funds for a large down payment (Typically as low as: 3.5% down payment) - Downside: U have to pay mortgage insurance premium (MIP) regardless of the loan to value Mortgage Insurance Premium (MIP) - Correct Ans - Amount paid by a mortgagor for mortgage insurance, either to a government agency such as the FHA or to a private mortgage insurance company. Loan-to-Value (LTV)
Page1of 1
Uploaded by BaronNightingalePerson957 on