FIN 3351 Chapter : Chapter 9 Notes RE
Document Summary
Size limit: currently ,000 (higher for high cost areas) Conforming conventional home loan: meets the requirements for purchase by freddie mac and fannie mae: ****have to be no greater than 80% loan to value***** A nonconforming loan: does not meet gse requirements in some respect. Protects the lender for loans over 80% of value. Protects lender for losses up to 20% of loan. Insurer may allow termination if pmi loan falls below 80% of current value and borrower is in good standing have to do it at 78% Heloc- like a credit card for the home--- line-of-credit. Home-equity loan are closed-end and fixed --- 30k for a new garage or a pool, pay monthly. Tax deductible interest from your home interest--- heloc is too. National housing act of 1949- decent home and suitable living environment. Fha is strictly a loan insurance program --- they make no money on the mortgage. Mip (mortgage insurance premium)- the borrower pays insurance premium.
