http://videotap.wistia.com/medias/swsmwlu198?embedType=async&videoFoam=true&videoWidth=640 Equity is the value YOU own in property such as a house. It’s the difference between what’s OWED and what the property is WORTH in the current market. The example this video shows - you have a house worth $300,000 today and you owe the bank $200,000. Your equity would be...
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http://videotap.wistia.com/medias/5vqdsef8xh?embedType=async&videoFoam=true&videoWidth=640 Like the video says - real estate agents aren’t paid by the hour!They’re paid a percentage of the purchase price in a successful real estate transaction. When one agent represents the sellers and another represents the buyers the commission is typically split between them. In the US,...
http://videotap.wistia.com/medias/h8ina3eyzq?embedType=async&videoFoam=true&videoWidth=640 The Prime Lending Rate - sometimes just called “Prime” - is the interest rate that banks charge each other for overnight loans. Some consumer rates - like ARMs - are set in relation to Prime. In the US, Prime is affected by the Federal Reserve lending rate to banks; historically,...
http://videotap.wistia.com/medias/rvx9htof1p?embedType=async&videoFoam=true&videoWidth=640 As we show you in this video, an escrow account is an account, established by your lender, to set aside a portion of your monthly mortgage payment to cover annual charges for homeowner's insurance mortgage insurance (if applicable), and property taxes. Escrow accounts are a good idea because they assure...
http://videotap.wistia.com/medias/g6tl2t0nti?embedType=async&videoFoam=true&videoWidth=640 You’ll see some pictures in this video to help you remember later, but the first step in securing a loan is to complete a loan application. To do so, you'll need the following information. Pay stubs for the past 2-3 months. W-2 forms for the past 2 years. Information on long-term...
http://videotap.wistia.com/medias/6u3yi2ieus?embedType=async&videoFoam=true&videoWidth=640 Discount points allow you to lower your interest rate. While this video simplifies things to help you remember, “points” are essentially prepaid interest with each point equaling 1% of the total loan amount. Generally, for each point paid on a 30-year mortgage the interest rate is reduced by 1/8...
http://videotap.wistia.com/medias/rgqvpsvgfe?embedType=async&videoFoam=true&videoWidth=640 Well, as this story shows, the amount of the down payment the size of the mortgage loan, the interest rate the length of the repayment term and payment schedule will all affect the size of your mortgage payment. In bullets: down payment loan size interest rate - fixed or adjustable repayment term -...
http://videotap.wistia.com/medias/gfxg0vvmyj?embedType=async&videoFoam=true&videoWidth=640 While this video simplifies things to help you remember, the loan to value ratio is the amount of money you borrow compared with the price or appraised value of the home you are purchasing. Each loan has a specific LTV limit. For example: With a 75% LTV loan on a home priced at $100,000 you could borrow up...
http://videotap.wistia.com/medias/c5dfu8zwsx?embedType=async&videoFoam=true&videoWidth=640 This video tells you about the most common types: Fixed Rate, ARM, Balloon and 2-Step. First, Fixed Rate Mortgages: Payments remain the same for the life of the loan generally 15 years or 30 years. Interest rates remain the same, so payments are predictable. A second common type is an Adjustable Rate...
http://videotap.wistia.com/medias/ynx69005r3?embedType=async&videoFoam=true&videoWidth=640 For both, as we show you in this video, compared with other options, with fixed rates, housing costs won’t be affected by interest rate changes and inflation. With A 30-Year Term: In the first 23 years of the loan more interest is paid off than principal meaning larger tax deductions. As...