About This Chapter
Introduction to the Mortgage Market - Chapter Summary
Improving your understanding of the mortgage market is simple with help from this short online chapter. Engaging lessons make it easy to grasp the basics of mortgages, lending issues, reverse mortgages, mortgage rates and much more. This chapter is a flexible and mobile-friendly way to study the mortgage market. The lessons can be accessed anytime, in any sequence and as many times as you'd like. Mini quizzes and a chapter exam are available to determine how well you understand the concepts explored in the lessons. Taking advantage of this chapter's resources will enable you to do the following:
- Define and discuss the purpose of a mortgage
- List and discuss lending issues in the real estate market
- Share the meaning of a moral hazard and discuss why it exists between businesses and individuals
- Identify and describe types of mortgage rates
- Differentiate between variable and adjustable mortgage rates
- Discuss uses, pros and cons of the reverse mortgage
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. Lending Issues in the Real Estate Market
Since the 2007-2008 housing market collapse, two of the defining issues in real estate lending have been tightening up of lending standards and decreasing interest rates for mortgage loans. In this lesson, we will discuss these issues and how they affect the current housing market.
3. Moral Hazard in Economics: Definition & Examples
Learn what a moral hazard is and why they exist between individuals and businesses. Find out some common examples of moral hazards and discover where the term was first used.
4. Mortgage Rate: Definition & Types
During the exciting process of buying a home, most buyers need to also decide on what type of mortgage they want. In this lesson, we'll discuss the most popular types of mortgages and some of the benefits and costs of each.
5. Variable Mortgage Rates vs. Adjustable Mortgage Rates
When it comes to mortgages, you really have to understand what you are getting so you won't get hit with a surprise in your monthly mortgage bill. We'll learn the difference between a variable rate mortgage and an adjustable rate mortgage.
6. What is a Reverse Mortgage? - Uses, Pros & Cons
Older homeowners sometimes take advantage of a special loan called a reverse mortgage. In this lesson, learn how these homeowners can tap into the equity in their home through a reverse mortgage, along with the pros and cons of such a loan.
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Other chapters within the TECEP Financial Institutions & Markets: Practice & Test Prep course
- Financial Markets & Financial Instruments
- Interest Rates Overview
- Financial Market Analysis & Trading
- Banks & Other Financial Intermediaries
- The Flow of Funds in Financial Intermediaries
- Regulation of Financial Institutions
- Introduction to International Finance
- Futures & Options
- Branch Banking & Deposit Insurance
- Money & Interest-Rate Relationships
- Inflation & Income Policies
- TECEP Financial Institutions & Markets Flashcards