Getting it Financed Flashcards
Which market must estate agents be knowledgeable about?
The home financing market.
When can it be relatively easy to get financing at reasonable rates?
When economic conditions are good.
When interest rates ____, it becomes progressively more difficult for buyers to get _______, and this becomes a significant hurdle in the _______ _______.
- Rise
- Funding
- Selling process
Types of financing available? (FSTD)
1.) Fixed rate mortgage
2.) Standard-variable-rate mortgage
3.) Tracker mortgage
4.) Discount mortgage
Fixed rate mortgage?
Paying the same interest rate for a specific period, often 2 or 5 years.
After the fixed-rate mortgage period has expired, where do you move to unless you secure another fixed-rate deal?
To the lender’s standard variable rate mortgage.
Standard-variable-rate mortgage?
A rate the lender sets and it can change at any time.
Tracker mortgage?
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.
Discount mortgage?
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.
Mortgage?
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.