please respond to. cj. with. 200. words
Chapters 9 & 10 discussion
BRE-126, Real Estate Finance
Charlie
3/09/24
Textbook Author: Walt Huber
Chapters 9 & 10
Overview
In chapter 9, it talks about conventional financing, where it gets into all about conventional loans, how they work and what they are. There also is chapter 10 that discuss the alternative financing types such as buydowns, (ARMs), (GPMs), and (GEMs). Both chapters seems interesting and a lot to learn, especially chapter 10 that carries a lot of information.
KEY CONCEPT FROM CHAPTER 9
The conventional real estate loans are involved long term-fixed rate repayment plans. “A long term, fixed rate real estate loan is one that is repaid over 15-30 years at an unchanging rate of interest”. (page. 227). There are types of loans that are conventional like an amortized loans and the 15 year fixed rate mortgage loans.
Key Concept from Chapter 10
ONE OF THE MAIN KEY POINTS IN CHAPTERS IS A BUYDOWN AND THERE ARE BUYDOWN PLANS WHICH IS A WAY TO LOWER A PURCHASER’S MONTHLY PAYMENTS AS AN AID TO QUALIFY FOR A LOAN. (PG. 256). A BUYDOWN IS ALSO THE EASIEST AND MOST AGREEABLE WAY TO MAKE THE EXPENSIVE LOANS LESS EXPENSIVE. A BUYDOWN IS A FORM OF THE ALTERNATIVE LOAN FORM WHICH IS ADJUSTABLE RATE MORTGAGE.
Key Concept from Chapter 10
To discuss more on adjustable rate mortgages which is (ARM’s). It is the widely popular acceptable form of alternate financing which shifts the risk of interest rate fluctuations to the borrower, lenders then usually charge a lower rate for the ARM than a fixed-rate loan. (Pg.260). Another key concept in this chapter is growth equity mortgage (GEMs). GEMs determine annual payment adjustments, builds up equity quickly, the payments become predictable, there is no negative amortization, and reduces the interest costs.
SUMMARY
To conclude on this discussion, both chapters are heavily informative. I learned many key concepts like GEMs, ARMs abbreviation concepts and what is a buydown and discount points in chapter 10 which has a lot of key information there. Also, what I learned in chapter 9 as well such as the all the types of conventional loans like the 15-30 year loans and fixed-rate mortgage loans and all about it. Many key concepts I learned there as well.
We offer the best custom writing paper services. We have answered this question before and we can also do it for you.
GET STARTED TODAY AND GET A 20% DISCOUNT coupon code DISC20
We offer the bestcustom writing paper services. We have done this question before, we can also do it for you.
Why Choose Us
- 100% non-plagiarized Papers
- 24/7 /365 Service Available
- Affordable Prices
- Any Paper, Urgency, and Subject
- Will complete your papers in 6 hours
- On-time Delivery
- Money-back and Privacy guarantees
- Unlimited Amendments upon request
- Satisfaction guarantee
How it Works
- Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
- Fill in your paper’s requirements in the "PAPER DETAILS" section.
- Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
- Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
- From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.
