REAL ESTATE FINANCE
Respond to initial post. please use long and thourough explanations for each question.
****150-170 words for the response to peer which will be updated to this assignement as soon as i received my initial post response.
Discussion Questions to answer for your initial post:
Under what circumstances do you think it is best as a Borrower to consider having a Fixed Interest rate Mortgage loan? Under what circumstances (if any) could it be better to take an Adjustable-rate Mortgage loan? What is the risk of obtaining a mortgage loan that contains negative amortization payments?
What classification group of borrowers could possibly obtain a Reverse Annuity Mortgage (RAM)? Why is this type of loan called a Reverse Mortgage Loan? What are some of the basic requirements of being approved to participate in the program? In your opinion, under what circumstances would you either recommend or not recommend someone to consider such a program?
What happens when a new borrower does a buy down when originating their loan? Describe 2 possible ways this can be done? Under what circumstances would a Borrower want to consider doing a permanent buydown?
When does Private Mortgage Insurance (PMI) get added to a Conventional Loan? Who pays this insurance and who does this insurance protect?
Name 2 benefits of obtaining an FHA mortgage loan. Name one potential disadvantage of the FHA loan program versus obtaining a Conventional Loan?
Of all the Loan programs you have read about so far in this course, which one(s) in your opinion would you recommend to others, and which one(s) would you advise others to avoid? Explain why?
What impacts could occur to the Local Mortgage Market if the Secondary Mortgage Market suddenly halted their operations? How do you think this could this affect Housing prices?
Why are Junior Mortgage Liens considered to be high risk relative to a First (Senior) Trust Deed Mortgage? During a foreclosure when there are insufficient sale proceeds to pay off all the existing liens, who gets paid first? Why would a Junior lien consider curing a default on a Senior lien mortgage?
