FI 413 Lecture Notes - Lecture 7: Manufactured Housing, Alimony, Mortgage Insurance
Document Summary
Readings: pages 46-55 from the course pack http://www. wsj. com/articles/a-banker-beat-down-that-could-hurt-housing-1441392096. Fred house price index for the united states http://blogs. wsj. com/economics/2016/08/10/the-typical-home-in-san-jose-now-costs-more-than- Promissory note lending agreement, describing the repayment terms. What if the appraisal is ,000: ltv=loan(which is the price-down payment) /lower of appraisal and price. Explain: 25% is the percent of the loan, bigger% means the more payout to the bank form the insurance company, bank x has pmi coverage on a mortgage that has gone bad. Bank x is owed ,000 in principal and unpaid interest, and has incurred ,000 in covered foreclosure-related costs. Alternatively, if the house is sold for ,000 to a third party in the foreclosure sale, then the bank loses __________. For a 96% ltv, what is the ongoing annual premium, and for how long must annual premiums be paid: 1. 75% and annual premium of . 85, fha mortgage insurance covers 100% of the claim (principal, unpaid interest, foreclosure costs).
