This concludes Chapter 13. Below is a brief summary which you can review before you take your chapter quiz.
Parts to a mortgage loan: Pledge or promise to pay (promissory notes); Collateral, which allows a lender the right to foreclose if the borrower does not pay (mortgage or deed of trust).
Promissory notes:
Fully amortized loan: an installment note that includes principal and interest of equal installment payments that liquidate the debt.
Balloon payment: any payment greater than a double monthly payment.
Mortgage: MORTGAGOR = Borrower; MORTGAGEE = Lender
Deed of Trust: TRUSTOR = Borrower; BENEFICIARY = Bank; TRUSTEE = Bank Vice-President or anyone designated by the lender
Duties of the borrower in a mortgage or deed of trust:
Clauses in a Mortgage or Deed of Trust Instrument
An assumption is when the buyer takes over the original payment, the original loan, and the original interest rate of the seller's existing loan:
Novation is a second contract to assume liability for the debt for the purchaser and relieve the liability to the seller.
A monthly loan payment consists of:
And, if escrowed:
A mortgage or deed of trust must be recorded where the property is located.
Junior mortgages are second mortgages or deeds of trust.
Foreclosure is the legal process in which the property pledged as security in the mortgage documents or the deed of trust is sold to satisfy the debt (promissory note).
If the proceeds from the foreclosure sale are not sufficient to cover the debt, the lender can go to court and seek:
Interest is the amount of money that a lender charges for the use of money.
Usury or illegal interest: charging interest in excess of the rate set by law.
Leverage is the principal of using other people's money to make investments, such as buying homes. Equity is the value in a property held by the owner in excess of any liens against it.
A factor is the cost per thousand that is required to create the principal and interest payment necessary to pay off the loan.
LOANS:
Adjustable-rate Loan (ARM): Interest rate fluctuates (often tied to an index). The interest rate is usually the index plus a premium called the Margin. How often the loan rate may be changed is determined by the Adjustment Period.
Graduated Payment Plan: Lower payments first year, then payments increase.
Reverse Annuity Mortgage (RAM): Senior homeowner receives monthly payments based on accumulated equity rather than a lump sum.
Part Purchase Money: mortgage given as part of the buyer's cash for the purchase of real property, and delivered at the same time that the real property is transferred.
Package Mortgage: Loan on real estate, plus fixtures, and appliances.
Blanket Mortgage: Loan on several pieces of land.
Open-end Mortgage/deed of trust: Loan that is expandable by increments up to a maximum dollar amount.
Wraparound: Additional financing from a second lender.
Buydown: The payment is subsidized at the beginning.
Construction Loan: 1) - The lender commits the full amount of the loan to the borrower, but makes partial progress payments; 2) - high interest rate to builders.
Takeout Loan: Long term permanent financing for large construction projects.
Sale-Leaseback: Owner sells his or her improved property and at the same time signs a long-term lease.
Participation Mortgage: the lender participates in the income of the mortgaged property beyond a fixed return.
Bridge Loan: Short-term interim loan for buyer, usually six months to one year in duration.
Contract for Deed: Seller financing in which the buyer does not receive legal title until the final payment is made.
Vendor - The seller of realty; the seller under contract for deed; Vendee - The purchaser of realty; the buyer under a contract for deed.
Loan Assumption - The act of acquiring title to property that has an existing mortgage and agreeing to be personally liable for the terms and conditions of the mortgage, including the payments.
"Subject to mortgage" - A grantee (buyer) taking title to a real property "subject to" a mortgage is NOT personally liable to the lender (mortgagee) for the payment of the mortgage note.
No. | Subject | Date | Views |
---|---|---|---|
Notice | 부동산 용어사전 | 2019.04.15 | 2372 |
Notice | 부동산 용어 (A to Z) | 2019.03.03 | 1601 |
111 | TEST 18 | 2019.03.23 | 630 |
110 | Chapter 18 Conclusion | 2019.03.23 | 209 |
109 | TEST 17 | 2019.03.23 | 257 |
108 | Hudson Yards | 2019.03.16 | 106 |
107 | TEST 17 | 2019.03.10 | 237 |
106 | Chapter 17 Conclusion | 2019.03.10 | 146 |
105 | TEST 16 | 2019.03.10 | 175 |
104 | TEST 15 | 2019.03.07 | 130 |
103 | Chapter 15 Conclusion | 2019.03.07 | 448 |
102 | TEST 14 | 2019.03.07 | 116 |
101 | Chapter 14 Conclusion | 2019.03.07 | 131 |
100 | TEST 13 | 2019.03.07 | 165 |
» | Chapter 13 Conclusion | 2019.03.07 | 108 |
98 | TEST 12 | 2019.03.06 | 353 |
97 | TEST 11 | 2019.03.06 | 159 |
96 | CHAPTER 11 | 2019.03.06 | 135 |
95 | TEST 10 | 2019.03.05 | 235 |
94 | Chapter 10 | 2019.03.05 | 252 |
93 | SUMMARY 9 | 2019.03.05 | 78 |
92 | TEST 9 | 2019.03.05 | 184 |
91 | Chapter 8 Quiz | 2019.03.04 | 144 |
90 | Chapter 8 Conclusion | 2019.03.04 | 272 |
89 | DEED | 2019.03.04 | 94 |
88 | warranty deed 여섯 가지의 covenant | 2019.03.04 | 96 |
87 | Chapter 7 (TEST) | 2019.03.04 | 153 |
86 | Chapter 6 Quiz | 2019.03.04 | 441 |
85 | TEST 5 - Correction | 2019.03.02 | 258 |
84 | Chapter 5 Conclusion | 2019.03.02 | 103 |
83 | Condominium Ownership and Time Shares | 2019.03.02 | 96 |