Module 1: Mortgage Financing

January 13, 2023

“You’ll always run out of money before you run out of good deals.” – A. Gilad

Presentation:

• Video Lecture (YouTube)

• Historical Mortgage Rates
• Mortgage 101 – video series at realtor.com
  • Basics
  • Rates
  • Credit Rating
  • Down Payment
  • 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)?

Assignment:

1. Watch the Mortgage 101 video series by Realtor.com
2. Select a detached Single Family (SF) property (no condos or townhomes) for sale using Zillow or Realtor.com.
   • Record the address.
   • Record the asking price.
3. Check out historical mortgage interest rates.
4. Check out current interest rates.
5. Read about amortization
   • Go to the Bankrate Amortization Schedule Calculator, scroll down and read:
     1. What is an amortization schedule?
     2. How do you calculate amortization?
     3. How do I calculate monthly payments?
6. Generate an amortization schedule
   • Scroll back up to the top of the page: Amortization Schedule Calculator
   • Use 20% of the home value (from 2) as your down payment.
   • Generate an amortization schedule.
7. Submit the amortization schedule
   1. Download or copy the amortization schedule into a spreadsheet.
   2. Save the spreadsheet with your name and the property address in the file name.
   3. Submit the spreadsheet
      • Option 1: Share your Google Sheets file and copy-past the link in Bb.
      • Option 2: Upload your Excel spreadsheet file (.xlsx) in Bb