Ch 21: Real Estate Loan Calculations

About This Chapter

This chapter will introduce you to the basics of calculating real estate loans. Experts have crafted these lessons with an easy-to-follow design intended to fit into a busy lifestyle.

Real Estate Loan Calculations - Chapter Summary

A lot of consideration goes into calculating a loan in real estate. This chapter will show you the groundwork of these calculations, allowing you to better understand how and why certain decisions are made. By the end of your lessons, you will have a firm grasp of the following topics:

  • Calculations for home buyer qualifications
  • Financial calculations in relation to lending
  • Mortgage amortization and how it is calculated
  • Calculations of down payments and home equity
  • Loan-to-value ratio
  • Loan financing costs such as prepayment penalties
  • Property appreciation

With the ability to view your instructor's information at any time, you know you are receiving your lessons from a professional. Our experts have crafted these lessons to be both engaging and informative to keep you mind actively absorbing the material. Short self-administered quizzes at the ends of lessons will ensure that you have learned the lessons completely.

8 Lessons in Chapter 21: Real Estate Loan Calculations
Test your knowledge with a 30-question chapter practice test
Home Buyer Qualification Calculations

1. Home Buyer Qualification Calculations

In this lesson we will look at some of the financial ratios used to determine how much of a monthly mortgage payment a buyer can qualify for, without wasting time on unaffordable properties.

Financial Calculations Related to Lending

2. 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

3. 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.

Down Payment & Purchase Price: Definitions & Calculations

4. Down Payment & Purchase Price: Definitions & Calculations

Buying a house is exciting, but also overwhelming. It takes preparation to ensure you will have enough for the down payment and understand what the purchase price means.

Loan Financing Costs: Discount Points, Prepayment Penalties & Fees

5. 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.

How to Calculate Home Equity & Down Payments

6. How to Calculate Home Equity & Down Payments

Home equity and down payments are two aspects of getting funding for your clients' new home. By understanding these terms, you can help your clients use their funds and maximize their money for their new home.

Loan-to-Value Ratio: Definition & Formula

7. Loan-to-Value Ratio: Definition & Formula

Understanding the loan-to-value ratio can help your clients understand how banks will evaluate their loan and one factor that will affect their credit rating.

Property Appreciation: Definition, Calculation & Example

8. Property Appreciation: Definition, Calculation & Example

In this lesson we will look at what property appreciation is and how real estate professionals as well as homeowners can estimate the value of a property at a certain point in the future based on historical market information.

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.
Not Taken

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