About This Chapter
Basic Real Estate Financing Terms & Concepts - Chapter Summary
The lessons in this chapter provide an overview of basic real estate financing terms and concepts. You can learn about the primary elements of a mortgage. You'll also look at common examples of promissory notes. After completing the chapter, you should be prepared to:
- Explain the purpose of a mortgage
- Define terms often used in financial documents for real estate
- Recall who's involved in escrow
- Describe the use of escrow accounts in real estate
- Provide the definition for a promissory note in lending
Our instructors use plenty of helpful examples in these concise lessons to help you comprehend basic real estate financing terms and concepts. A brief quiz is available for each lesson to test your knowledge. You can also study offline by printing the quizzes as a worksheet.
1. What is a Mortgage? - Definition & Purpose
Learn about one of the largest loans most people will ever encounter. Find out about the key elements to a mortgage and how a mortgage works when buying a home.
2. What Is a Promissory Note? - Definition & Example
This lesson will provide an overview of a promissory note in lending. You'll learn the definition of the term and look at a common example of a promissory note.
3. Terminology for Real Estate Finance Documents
Terminology related to financial documents in real estate can be intimidating. In this lesson, we will define some of the most common financial terms used in real estate and discuss how they impact the cost of borrowing.
4. What is an Escrow Account? - Definition & Rules
Escrow is used in real estate sales transactions and in the servicing of mortgage loans every day. In this lesson, you'll learn what escrow is, who's involved and how escrow accounts are used in real estate transactions.
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Other chapters within the Michigan Real Estate Broker Exam: Study Guide & Practice course
- Property & Land Characteristics
- Air, Mineral & Water Rights in Real Estate
- Liens & Encumbrances in Real Estate
- Types of Property Ownership
- Real Estate Land Use Controls & Regulations
- Property Valuation & Appraisal
- Types of Real Estate Loans
- Lending & Underwriting Processes
- Agency Relationships & Agreements
- Disclosures of Property Conditions
- Real Estate Sales Contracts
- Leasing & Property Management
- Real Estate Title Transfers
- Real Estate Practices
- Common Real Estate Calculations
- Michigan Licensing & Statutory Requirements
- Michigan Real Estate Laws
- Michigan Real Estate Broker Exam Flashcards