Lesson 3: Mortgage Finance 101
August 31, 2021
Review:
- How to Buy Real Estate
- Attendance
- Properties identified
Presentation:
“You’ll always run out of money before you run out of good deals.” – Artie Gilad
- Historical Mortgage Rates
- Mortgage 101 – video series at realtor.com
- Basics
- Rates
- Credit Rating
- Down Payment
Closing Process- Home Loans
- Mortgage Process
- Mortgage Types
- Fixed vs ARM
- 10, 15, 20, 30 – which amortization?
- 1, 3, 5, 7, 10 – which initial time period (before ARM rate adjusts)?
Activity:
- Calculate monthly mortgage payments for your selected property
- Assume 20% down payment
- Use current mortgage rates published by Freddie Mac
- Calculate monthly payments for 3 loan types
- 30-year fixed
- 15-year fixed
- 5/1 ARM
Assignment:
- What do you think your selected property is worth?
- Is the asking price fair?
- Can you find similar properties and their selling price?
