UGBA 196 Lecture Notes - Lecture 9: Negative Amortization, Lightning, Zillow

• School: Berkeley
• Department: Business Administration Undergraduate Program
• Course: UGBA 196
• Professor: Fred Selinger

Document Summary

Mortgage: document of loan agreement when go to buy house. First mortgage: has claim to the property when property is sold or there is a default (person who bought the house isn"t making loan payments) Home equity loan: people use to borrow money . Real hot market in housing and value goes up to ,000. Home equity loan desired ,000 (secured by property) Repayment plan: equal monthly payments at fixed rate of interest. Heloc: use house as collateral for borrowing even more money. Lean: put on property because someone who owns property owes something to someone. 2nd lean: heloc, second loan, second mortgage --> can"t force foreclosure. If loan gets in trouble, the first mortgage holder to foreclose on it and sell it has to get the permission of 2nd lean holders. As rates go down, go out and get another loan at a lower rate,