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In This Chapter You will look at the almost endless
array of mortgage rates and accompanying fees used in today’s finance market.
Adjustable Rate Mortgage
Interest rate Margin Adjustment period Interest rate cap Payment cap Negative amortization Disclosures
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What to look for?
Other Financing Methods Graduated Payment Mortgage Equity Sharing “Rich Uncle” Financing Package Mortgage Blanket Mortgage
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More Financing Methods
Reverse Mortgage Construction Loan / Interim Loan Blended-Rate Loan Equity Mortgage
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Affordable Housing Loans Underwriting standards are modified to
recognize different forms of credit responsibility.
Consumer education. Low down payment.
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More Financing Methods
Conventional Loan (97%) The Nehemiah Program
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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.
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Wraparound Mortgage
BuyerSeller$20,000
Debt$60,000
Debt
1st Lender
(Includes wrapped$20,000)
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Financing Techniques Subordination Contract for Deed Option Creative Financing Rental Land Leases
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Investing in Mortgages Individuals can invest in mortgages Individuals can purchase junior mortgages Higher yields available Risk as to repayment & difficult to convert to
cash before maturity
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