Tulsa Real Estate Agents | Start the Journey Today
Tulsa Real Estate Agents Hey tulsa real estate agents. Today we are going to talk about real estate financing and we are going to go over some terms that are common in the finance world and try to describe and explain as much as possible. So the first thing that we’re going to talk about is the promissory note. And what exactly is a promissory note? Tulsa Real Estate Agents It is also called a financing instrument and all that means is. You are making a promise to repay a debt according to whatever the terms are that the lender gives you it is executed by the borrower or whoever the maker is of that note, and it’s a contract between the winter and the borrower. So it generally will tell you how much that you’re going to go, how long or how many years it’s going to take for you to pay it back and what the method of payments going to be, and it’s also going to include your annual percentage rate, is also considered a negotiable instrument which is kind of like sort of like a bank draft or a check. So whoever holds the know, you can transfer the right to receive payments to a third person. So what exactly enter is interest? Will tulsa real estate agents need to know that interest is a charge that you are going to have to pay in order to borrow money or use somebody’s money? So they’re not just giving you money for free and you pay that back, but if you’re going to borrow it you’re going to have to pay a percentage of the loan back. So if you got a $120,000 mortgage on your interest rate might be 5% and they’ll calculate it out from there. Another important, tulsa, real estate agents need to know is usery and what exactly is usery well ussery is when a lender will charge a borrower interest in excess of a maximum amount, and that is actually breaking the law. So it’s to protect. We want to protect anyone who is getting a mortgage from a lender from use recharges, so at some lenders will also charge you a loan origination fee and what is common is a 1% loan origination fee is also called a transfer fee. Abbott’s, usually maybe 1% of the loan tulsa real estate agents need to be aware of when discount points are because this could benefit their clients if their client, a low credit score. That’s causing her interest rates to be a little bit higher, I borrow or can buy down, does discount points by purchasing them, and usually it one point equals 1% of the loan amount. So 1% of $120,000 is what the borrower would actually pay to purchase a discount point to bring the interest rate down and buy low interest rate just means that your monthly mortgage payments are going to be cheaper does sometimes. This is beneficial if someone is looking more, what they’re, paying monthly verses, putting more money down on the house. So so now we’re going to discuss a little bit about what a mortgage is, what a mortgagee is in the mortgage or and the mortgagee and mortgagor is kind of confusing to tulsa real estate agents when they’re taking their real estate exam, because we always hear the o r m e e rule to give for in the giving I’m. In this situation, the two terms are flipped and the mortgage or is not actually the give or it is actually the person who is receiving the loan and the mortgage is the person who is giving the loan, which is the winter and actually a mortgage. A lot of people think that I’m working is just money being borrow, but it’s actually a lien is on real property, and when you take out a mortgage, you are taking alina on that piece of property as a promise that you were going to pay it back for the promissory note, oklahoma is a lien theory state, and that just means the mortgagor and the person who is receiving the loan will be able to retain the legal and equitable title to the property and the mortgagee has a lien on the property, but but there’s nothing more than collateral, there’s, no, those that there’s no cloud around the property, so oklahoma is a lien theory state. Other states will also be a title:theory straight I’m. Sorry, a title theory state which is just a deed of trust where there is a borrower who’s, the trustor in a third-party who is the trustee and the lender would be the beneficiary tulsa real estate agents just need to understand that oklahoma is a lien theory state, not a title theory state. So in the title, theory the mortgage or actually conveys legal title to the mortgagee, and they are so. The legal title is actually returned to the mortgage, or only whenever they have paid off the debt completely in full. So that is the difference between those two you. So the borrower is going to have some duties, whether it’s a mortgage or or a trustor, and those duties include the debt and that’s going to be obviously according to the terms of the debt, and those terms are looking at on the promissory note and other duty is payment of all real estate. Taxes on the property, so you’ll have you’ll be responsible for maintaining insurance on the property. You have to have insurance and that’s going to protect your property from any type of natural disasters, whether it be a tornado fire halestorm. Then you’re going to have maintenance on the property, make sure that the properties and maintenance at all times, so they are going to have when they take out a mortgage. Let’s talk about what a release of the mortgage is a tosser only tulsa real estate agents need to know that a release of the mortgage, lien or the deed of trust is executed by the satisfaction of the mortgage, and that just means that once the mortgage has been satisfied and paid in full that the lien will be released off the property and a lot of times.
You know if you have not put down 20% of the loan and you are getting an fha mortgage you’re going to have to pay pmi insurance as well. So that is important for tulsa real estate agents to know so they can inform their clients different types of loans. You have a straight loan mortgage and that’s when the borrower is paying interest only on the phone. You have an amor amor amor size loan, which is where the european a portion of the principal and a portion of the interest, and that’s the most common loan people take out. You have an arm loan, which is an adjustable rate mortgage and that just means that you’re going to start at 1 interest rate and that interest rate can fluctuate over time. It can get larger or it can grow smaller. So a lot of people. What are try to stay away from those type of mortgage is for sure you have a growing equity. Mortgage is also called a rapid pay off mortgage, and that just means that there is the mortgage uses a fixed interest rates and payments of the principal will increase over time, and it really depends on the index of the schedule on how much that increases going to bean. You also have balloon payments which I’m a balloon payment is when european a specific amount every month and when it comes down to your last payment, the final payment usually is about twice the amount as your normal payment, since it’s called balloon payment to have a reverse mortgage, and that’s really typically for homeowners, who are at least 62 years of age or older, and they are borrowing money against the equity that has built up in the home. So the homeowner, usually their equity, will actually pretty much disappear as the amount as the amount increases over time. So the most popular reverse mortgages are off are also insured through fha different methods of foreclosure and those measure. Those methods will include a judicial foreclosure and non-judicial foreclosure and a strict foreclosure, and also there are short sells so we’ve got short sales and foreclosures. That’s when the banks are both going to be completely involved. Tulsa real estate agents just need to be more aware at it start going to list the house. If the house is going into foreclosure, it needs to be disclosed and tulsa real estate agents need to know that when they are giving their clients, property condition disclosure, and that could be something that would have to be disclosed to any potential buyer Tulsa Real Estate Agents