This entry was posted on Wednesday, April 18th, 2007 at 8:50 am and is filed under Financing, Lessons. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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April 18, 2007
Wrapping up with the Utah state law courses, we had a mortgage broker who had taught a previous course of ours come in. He announced that he would again be giving out a $20 gift certificate to a random member of the class. He attempted to give out two certificates but found the same person won each time.
I must confess that I appreciate when an instructor who is attempting to schmooze the class is open about it. Many of the guest instructors whom we’ve had appear fake or forced when they teach, always reminding us why their services are the best, and that we shouldn’t even bother comparing them to the competition. Open bribery is much easier than listening to silly rhetoric
Class began with the explanation of what a purchase money mortgage is (taking a mortgage in order to purchase a home), which can often be used to supplement the payment on a seller financed/assumed mortgage home.
We then learned about reverse mortgages, which one member of the class assumed was a means of pulling infinite money out of a home. Kind of like when I was young and assumed that adults could get unlimited money from their magical credit cards. Sadly, the member of the class was in her thirties.
He announced that there were 50 year mortgages now, which resulted in a terrified look from the class.
We then went through a few dozen sample test questions together. Here are some terms worth highlighting from the review.
A balloon mortgage is one which has a variable sized final payment, unlike an Arm which is generally amortized normally.
A blanket loan is one which covers multiple properties, and is paid off as parts of the property are sold. Builders often use these when building multiple properties.
Class concluded with the instructor explaining how the handouts he had given us would be so valuable to our dealing with clients in need of a mortgage. Conveniently the pages were covered with business cards, and included a ‘survey’ of the school which is obviously a silly attempt to get our contact information by pretending to care how we feel about the real estate school. Smart way to hook some agents I’d imagine. At least he offered us all a free lunch if we come to his office.
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