RE-160 Chapter Notes - Chapter 12: Unsecured Debt, Mortgage Loan, Loan Origination
18 Dec 2020
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Many homes in the united states are bought with borrowed money, and a huge lending industry has been built to service the financial requirements of homebuyers. Information about an applicants gross income and total debt that lenders generally look at as a percentage to determine qualification for a loan. Secured debt: lender has claim against borrower"s collateral in case of loan default. Mortgage loan is secured debt, house collateral for the loan. Pledge of real property to secure a debt. A fee charged to the borrower by the lender for making a mortgage loan. Fee is computed as a percentage of the loan amount. Discount points (1 discount point = 1% of loan) A unit of measurement used for various loan charges. Reduce interest on loan, add more fees to loan. 3 discount points on k is . 6k. Default <> due on sale <> acceleration, clauses prepayment penalty. Charge imposed on a borrower who pays off the loan principal early.
