About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Real Estate Exam Prep course
- Forms of Property Ownership
- Different Types of Estates in Real Estate
- Advanced Property Ownership Issues
- Real Estate Property Rights
- Encumbrances in Real Estate
- Advanced Encumbrances in Real Estate
- Land Use Regulations & Zoning
- Land Descriptions & Surveys
- Transfer of Real Property
- Advanced Transfer of Real Property
- Fair Housing & Consumer Protection Laws in Real Estate
- Real Estate Transactions & Contracts
- Contract Law in Real Estate
- Role of Agencies in Real Estate
- Property Valuation & Appraisal
- Real Estate Investment & Analysis
- Property Condition Disclosure Statements in Real Estate
- Overview of Real Estate Financing
- Real Estate Loan Types & Programs
- Real Estate Loan Regulations
- Real Estate Closing & Settlement Procedures
- Real Estate Taxes, Warranties & Insurance
- Leases & Property Management
- Principles of Practicing Real Estate
- Real Estate Ethics & Professional Responsibility
- Real Estate Exam Prep Flashcards