Mortgage and Types Of Mortgage

Mortgage

Today we will talk about mortgage what is mortgage. I think most of us have at least a common sense of this, but even better, to really go into the numbers and understand a little bit about what you're really into when you're paying off the mortgage, What is it made of and how much is interest versus how much is it actually paying off the loan. Let's start with a small example. Let's say there is a house that I like. Let's say this is the house I want to buy. It has a price tag, let's say I have to pay $500,000 to buy that house.

Mortgage

Story of mortgage

Here the seller of the house. And he has a mustache. He is the seller of the house. I would like to buy it. I want to buy house. Here I am And I'm able to save $205,000. I'm able to save $205,000 but I'd really like to live in that house so I go to a bank. I go to a bank, let me pick up a nice color for the bank. There is a bank there. And I say, "Mr. Bank, can you lend me the rest of the amount I need for that house?"

Which is essentially $375,000. I'm putting 25% down. Here's the number, that's $500,000 So I ask the bank, "Can I get a loan for the balance amount? Can I get a $375,000 loan?" And the bank says, "Sure. You look like a nice guy" with a good job who has a good credit rating. "I'll give you the loan but you can when you're paying off the loan" is the title of that house.

Say "We should have that title to the house" and once you've paid off the loan, say "We're going to give you that title to the house." What is going to happen here. The loan is going to go to me, so it's $375,000. $375,000 loan. Then I can go and buy the house. I'm going to pay a total of $500,000, $500,000 to the seller of the house, and assuming I'm using it for my residence, I'll actually come into the house myself. But the title of the house, the document that tells who actually owns the house. 

This is the title of the house.  It won't go to me. The bank will go The title to the home will go to the seller, or perhaps the seller's bank, because they probably haven't paid their mortgage. It will go to the bank I am borrowing from. This transfer of title to secure the loan. When I say "secured loan," I'm saying I'll owe the lender something if I don't pay the loan or it goes missing. There is security here.

 It is technically a mortgage. This pledge of title as security for a loan, that is, a mortgage. It actually comes from Old French. Death means dead, and Pana means promise. I'm 100% sure I'm spelling it wrong, but it comes from a dead pledge because I'm pledging it now, but that pledge will eventually die once the loan is paid off. This pledge of ownership to the bank will expire once I have paid the loan and it will return to me.

 That's why it is called mortgage or mortgage. And maybe because it comes from Old French so we can say it's a guage-gauge, we say it's deposit. They are actually talking about a mortgage loan.

 I am buying a house for $500,000. I think the rate here is 5.5% interest. 25% down payment, that $125,000 I saved I was talking about there. Then there is the loan amount. I have 125, I have to borrow 375, it makes us lose weight. And then I'll get a simple vanilla loan. It will be 30 years old. If I say tenure in years, how long does this loan last. That means 30 years. This would be the 30-year average loan rate. Adjusted rate, which means the interest rate will not change. We'll talk a little bit about that. The 5.5% loan I pay off won't change in 30 years.

As I repay the loan, we will see that the loan is subject to change. This is the minimum tax rate I have to know what the interest is really on my loan interest. We'll talk about that in a moment, you can ignore it for now. Then there are other non-grey objects, which you should not confuse with them if you actually open the spreadsheet. It is calculated automatically. 

This is the average interest rate here. So according to the annual interest rate, 5.5%, divided by 12. And most mortgage loans are covered monthly, so at the end of each month they look at how much you owe and they'll charge you that much interest for that month. Now that you've been given all these assumptions, there's a little behind the scenes, and in the next video I'll show you how to calculate the real value of a mortgage. A very interesting problem indeed.

But with a $500,000 loan -- well, a $500,000 home, a $375,000 loan, with an interest rate of 5.5% over 30 years, my loan repayment would be about $2,100. I would like to introduce some terms since I have bought a house, here is a question about the property, it is called a house. And we think it's worth $500,000. We think it's worth $500,000. This is a property. It is an asset because it benefits you in the future; The future benefit of being able to live in it. Now there is a liability against the asset, which is a mortgage loan. This is a debt of $375,000. $375,000 loan or loan.

If it was your balance sheet, if it was all your assets and it was all your debt, and you had to sell stuff and pay off the debt, if you sell the house you get a title deed, you can get the money. If yes, return it to the bank. Of course, it doesn't go that way, but I wouldn't be too professional. But if you open this job soon after you do it, you'll have a $500,000 home, you'll pay off your $375,000 in debt, and you'll have $125,000 in your pocket, which is really your first payment. Is. But your likeness.

Many a times buyers are not aware or not aware of the down payment requirement. It all depends on the type of loan they want to get. What I want to do, I want you to be definitely familiar with some of the most typical home loans, and what type of down payment is required to get these home loans.


Types Of Mortgage 


Type of mortgage

Traditional Loan

Now let's first talk about common loans. This, of course, will be your traditional loan. What is the meaning of your traditional loan? Twenty percent down, usually twenty percent down. Debt-to-Income Ratio: You must have a good, solid debt-to-income ratio, which means you can't have too much debt compared to your income. Also, your credit score should be quite strong. Again, it all depends on the situation, but the biggest thing here, of course, when it comes to the down payment? That's usually enough, and it's usually down 20%.

The next one you can consider for your buyers...if, again, they're not familiar with the buying process, if they're not sure they have enough money in their bank account, or in their pocket, or under the mattress. Whether it is or not, whatever... the FHA loan is.

FHA Loan

 FHA loans are great. These are the ones we are using, my wife and I have been using in the past with our buyers for almost 20 years. This is a great program for first time buyers, but that doesn't mean it's just for first time buyers. This is a great program, a huge advantage for first time buyers. Why? Because it is only 3.5% down payment. that's fair enough. Only 3.5% down payment. 20% than require a traditional? My god, it's so cheap. Let's put this in perspective.

FHA loan, let's say you want to buy a condor for half a million rupees. Condo for half a million dollars. If you went traditional, what's 20% of half a million dollars? That's right, $100,000. It's hard to save. If you went to 3.5% of half a million dollars, probably no more than $20,000. It is possible to save a family member to help you, or perhaps even gift it to you. You'd be very lucky if they could, but it would be a great option. So, traditional: 20% down. FHA Loans: Down 3.5%. The only regulation is this: the maximum you can borrow on this program. In LA County right now, it's $625,500 for LA County.

VA Loan

Now, the next one that is quite popular is, of course, the VA loan. Now I know you've heard of VA loans before. The VA loan is great because it is zero. did i say zero? Zero down payment. This is a wonderful dog. Now of course, this is generally a good sign for the active military and those who have served in the past. Below zero, the fee is quite reasonable. In fact, the fees, as you know..

Because we want vet service to be as easy as possible for our country... you can request the seller of the home to pay for the buyers... in this case, experienced... theirs. to pay the fee. That is, when veterans buy their house, they get zero. not a penny. My brother did this, and it worked beautifully.

Hear now: You want to be a real estate agent. I understood. You've got to know a little bit about the seller, and you've got to know a little bit about the buying process for your buyers, which means: Talk to a lender that offers the best products. Now, by products, I mean great types of loans. Right now, we went to three: Traditional, FHA, VA. There are many people who are not aware of what type of loan will benefit them. It is your job as a real estate agent to connect them with a great lender who has all these options


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