Getting it Financed Flashcards

1
Q

Which market must estate agents be knowledgeable about?

A

The home financing market.

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2
Q

When can it be relatively easy to get financing at reasonable rates?

A

When economic conditions are good.

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3
Q

When interest rates ____, it becomes progressively more difficult for buyers to get _______, and this becomes a significant hurdle in the _______ _______.

A
  • Rise
  • Funding
  • Selling process
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4
Q

Types of financing available? (FSTD)

A

1.) Fixed rate mortgage
2.) Standard-variable-rate mortgage
3.) Tracker mortgage
4.) Discount mortgage

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5
Q

Fixed rate mortgage?

A

Paying the same interest rate for a specific period, often 2 or 5 years.

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6
Q

After the fixed-rate mortgage period has expired, where do you move to unless you secure another fixed-rate deal?

A

To the lender’s standard variable rate mortgage.

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7
Q

Standard-variable-rate mortgage?

A

A rate the lender sets and it can change at any time.

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8
Q

Tracker mortgage?

A

Paying an interest rate that is a set percentage above the base rate, either for a set number of years or the lifetime of the mortgage.

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9
Q

Discount mortgage?

A

Paying the lender’s standard variable rate with a fixed discount. It may have a rate it can’t dip below known as a collar, or a rate it can’t exceed that is known as a cap.

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10
Q

Mortgage?

A

An agreement between you and a lender that gives the lender the right to take your property if you fail to repay the money you’ve borrowed plus interest.

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