Study Guides (248,289)
Canada (121,465)
Finance (316)
FIN 502 (35)
Joan Lobo (14)

Chapter 13.docx

2 Pages
68 Views
Unlock Document

Department
Finance
Course
FIN 502
Professor
Joan Lobo
Semester
Summer

Description
Chapter 13: Buying a home and mortgage financing Mortgage financing traditional way of borrowing $ to purch home Home mortgages - real estate loan w/ equal monthly pmt - monthly pmt may ↓/↑ according to changes in interest rates - keep paying lender each month for 15-30 years → own home "free and clear" - in interim not keep up w/ monthly pmt → lose home - Mortgage - transfer of interest in property to creditor as security for pmt of debt w/ right of redemption by borrower upon repmt of debt o equity of redemption - title of ownership of home conveyed to bank and have right to reclaim clear title to home upon full repayment of debt o mortgager - homeowner; person who gives the security to obtain loan; not have legal title o mortgagee - lender who re/ title to property until debt fully repaid o first mortgage - where conveyance of title involved retained by mortgager Second Mortgage - second mortgage - using equity redemption as security/collateral for a loan o right to a further equity redemption which can be further mortgaged - third mortgage - second mortgage further mortgaged - borrower retains equity of redemption of last mortgage given Terminology - principle - amt of $ that is being borrowed - interest - price paid by borrower to lender for the use of the lender money - amortization - gradual retirement of debt through partial pmt of principle at regular interval - amortization period - time period req to retire completely a debt through repmts of principle - blended pmt - method of repmt of debt where periodic repmt are constant and each pmt inclu interest and repmt of part of principle - term - actual length of time
More Less

Related notes for FIN 502

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit