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Ch 13: Introduction to Real Estate Financing

About This Chapter

Brush up on your knowledge of real estate financing with help from this self-paced chapter. Our engaging lessons, short quizzes and practice test make it easy to prepare for and excel on an upcoming test.

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.

12 Lessons in Chapter 13: Introduction to Real Estate Financing
Test your knowledge with a 30-question chapter practice test
Conventional Financing: Definition & Requirements

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.

The Role of Fannie Mae in Real Estate Financing

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.

The Role of Freddie Mac in Real Estate Financing

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.

The Role of Ginnie Mae in Real Estate Financing

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.

Seller Financing: Definition, Method & Effects

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.

Lien Theory State vs. Title Theory State

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.

Primary vs. Secondary Mortgage Markets: Definition & Differences

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.

Residential Real Estate Loans: Types & Features

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.

Terminology for Real Estate Finance Documents

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.

Financial Calculations Related to Lending

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.

How to Calculate Mortgage Amortization

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.

Loan Financing Costs: Discount Points, Prepayment Penalties & Fees

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.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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