Episode 102 - Real Estate Exam Questions: Real Estate Finance, Lending, and Math, Part 1

Episode 102 - Real Estate Exam Questions: Real Estate Finance, Lending & Math, Part 1

Going through state exam questions to help real estate students pass their state exam.

02:05 – B's Message: Making mistakes is better than faking perfection.

06:30 – List of recent grads: Andrea, Joyce, Lynn, Adrienne, Abigail, Jessica, Angela, Sara, Marquita, Kimmy, Bruno, Eric, Jennifer, Rina, Daisy, Sabrina, Shauna, Marie, Anne, Renae, Staci, Samantha, Joey, Steven, Barbara, Tina, Elizabeth, Karen, Ashley, Lewis, Veronica, Adam, Delaney, Dianna, Claudia, Bryant, Perry, Melissa, Sheila, Tina, Frank, Lane, Daniel, and Jade.

08:30 – Listener Message from Andrea

12:20 – Episode Focus: Finance and lending in real estate, part one. Part two will come out in June.

14:00 – PITI payment; Principal, Interest, Taxes, and Insurance.

18:15 – DTI; Debt to Income ratio.

21:35 – Promissory note; IOU; contract between the borrower and the lender.

24:10 – Mortgage – verb and noun (lien); hypothecation; mortgagor and mortgagee; lien theory versus title (trust) theory.

31:55 – Interest payments; Formula: Loan amount x Periodic Interest Rate = Periodic Interest Payment; interest rate is almost always expressed as an annual rate.

37:40 – Discount point; increases yield to lender; reduces interest rate paid by borrower; value of a discount point; Formula: Loan Amount x Discount Point (as a percent) = Cost of Discount Point.