RE-160 Lecture Notes - Lecture 24: Underwriting, Discount Points, Credit Score In The United States
18 Dec 2020
School
Course
Professor
Document Summary
Government involvement in re financing - part 3: mortgage finance legislation. Includes personal property and residential real estate property (range, refrigerator, drapes, etc. ) in the home loan. Normally used by developers - lenders will give a partial release for each lot as paid for but retain security on all remaining lots. With original lender"s permission, this loan includes the original loan in the loan amount and the new lender pays the original lender. A security interest is created that secures an initial fixed rate loan as well as future additional advances. Line of credit, additional advances, first loan is not limited. A loan for the full construction costs but it is only increased as funds are needed during construction so the borrower only pays for the balance at any given time. Takeout loan is negotiated for a longer term. Used for commercial properties as a means whereby a building owner can free up funds from equity in property.
