Mortgage Finance: Homework Assignment 4 - Principles of Real Estate | RE 310, Assignments of Real Estate Management

Download Mortgage Finance: Homework Assignment 4 - Principles of Real Estate | RE 310 and more Assignments Real Estate Management in PDF only on Docsity! RE 310 – Principles of Real Estate Homework Assignment #4 – Mortgage Finance Dr. Stanley D. Longhofer Read the assigned materials and briefly answer the following questions. 1) Explain the difference between the “mortgage” and the “note.” 2) Kansas has a statutory redemption law. What does this mean for someone whose property was foreclosed upon? 3) What does it mean to purchase property subject to an existing mortgage? What does it mean to assume a mortgage? 4) What is the difference between the primary and secondary mortgage markets? 5) What is the difference between a mortgage banker and a mortgage broker? 6) What are Fannie Mae and Freddie Mac, and what are their current roles in the mortgage market? 7) What is a conventional mortgage? 8) Suppose you were purchasing a property for $120,000 using a $100,000 mortgage. If the property’s appraised value is $125,000, what is your loan-to-value ratio? 9) On a traditional fixed-rate, fully-amortizing mortgage, the monthly payment remains __________ over the life of the loan. Early in the loan, most of the payment goes to __________; later in the loan, most of the payment is credited to __________. 10) What is a “point”? If you paid 2.5 points on a $150,000 mortgage, how much would you pay? 11) Explain the purpose of the Annual Percentage Rate disclosure and what it is intended to convey to a borrower. 12) Explain briefly what an adjustable rate mortgage is and how it works.