About This Chapter
Introduction to Real Estate Financing - Chapter Summary
This entertaining chapter goes over a wide variety of real estate financing concepts. By studying the bite-sized lessons, you'll gain insight into seller financing, loan financing costs, conventional financing and more. After completing this chapter, you should be ready to:
- Describe the roles of Fannie Mae, Freddie Mac and Ginnie Mae in real estate financing
- Differentiate between primary and secondary mortgage markets
- List and describe types of residential real estate loans
- Define terminology for real estate finance documents
- Make financial calculations related to lending
- Detail the process of calculating mortgage amortization
Explore this chapter at the pace that works for your study needs and schedule. All lessons and other study tools are accessible 24 hours a day. To check your knowledge of concepts presented in this chapter, be sure to take our lesson quizzes and practice exam. Visit the dashboard to track your progress and send lesson topic questions to our subject-matter experts.
1. Conventional Financing: Definition & Requirements
In this lesson we will define and describe the general requirements of conventional financing. We will also explore the concepts and application of loan-to-value ratios as well as private mortgage insurance.
2. The Role of Fannie Mae in Real Estate Financing
In this lesson, you will learn about the history and structure of Fannie Mae. We will also cover the role Fannie Mae plays in the field of real estate financing. A short quiz follows.
3. The Role of Freddie Mac in Real Estate Financing
One of the biggest players in the secondary mortgage market is Freddie Mac. In this lesson, you'll learn about the history of Freddie Mac and its role in the mortgage market. A short quiz follows the lesson.
4. The Role of Ginnie Mae in Real Estate Financing
This lesson covers the history, structure, and role in real estate financing of Ginnie Mae, or the Government National Mortgage Association. We will discuss how Ginnie Mae affects investors and homebuyers.
5. Seller Financing: Definition, Method & Effects
In this lesson we will define seller financing and how it works. We will also address some of advantages and disadvantages of this creative financing method.
6. Lien Theory State vs. Title Theory State
Depending on what state you choose to buy a home in, there are two theories that will affect your rights as a homeowner. In this lesson, we will explore the differences between lien theory and title theory in real estate.
7. Primary vs. Secondary Mortgage Markets: Definition & Differences
Mortgage markets are not only important for borrowers and lenders, but they also play an important role in the world of investment. In this lesson, you'll learn about the primary and secondary mortgage markets in the United States.
8. Residential Real Estate Loans: Types & Features
Different types of residential real estate loans involve varying interest rates and repayment schedules. In this lesson, we will explore some common loans and their features. Take a quiz after the lesson to test your knowledge.
9. 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.
10. Financial Calculations Related to Lending
Loan shopping involves a number of financial calculations. In this lesson, we will look at some of the common formulas used when talking about qualifying for and paying down mortgages.
11. How to Calculate Mortgage Amortization
In this lesson, we will briefly discuss what an amortizing loan is and show how to calculate a borrower's monthly payment on a fixed-rate mortgage using the loan information.
12. Loan Financing Costs: Discount Points, Prepayment Penalties & Fees
Real estate professionals need to know the expenses involved in getting a loan to purchase a home. In this lesson, you will learn about the typical costs, fees, and calculations associated with obtaining a mortgage.
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Other chapters within the Indiana Real Estate Broker Exam Study Guide course
- Introduction to Real Property
- Public & Private Land-Use Control
- Estate Ownership, Rights & Interest
- Deeds & Property Transfers
- Property Titles
- Property Value & Appraisal
- Introduction to Real Estate Contracts
- Real Estate Agencies & Agency Relationships
- Listing Agreements & Property Management
- Fair Housing & Consumer Protection
- Risk Management in Real Estate
- Property Disclosures
- Real Estate Lender Requirements
- Federal Real Estate Financing Regulations
- Closing & Settlement Real Estate Transactions
- Real Estate Investments
- Indiana Real Estate Commission & Licensing
- Indiana Real Estate Law
- Real Estate Business Procedures
- Indiana Real Estate Broker Exam Study Guide Flashcards