In this video, Michael provides insights into the loan-to-value ratio (LTV), a critical metric that delineates the relationship between the mortgage amount and the total purchase price, expressed as a percentage. The LTV is a significant factor in various loan types, influencing the terms and conditions of the mortgage. Michael breaks down the concept, shedding […]
Olear Makes it Clear – Episode 6 – Loan to Value Ratios Read More »
Funded through the Federal Housing Administration (FHA), a reverse mortgage is a financial tool available to homeowners aged 62 or older, leveraging the equity in their homes. This unique type of loan allows homeowners to receive payments in various forms, including a lump sum, monthly payments, or a combination of both. It is important to
Olear Makes it Clear – Episode 7 – Reverse Mortgage Read More »
The State of New York Mortgage Agency (SONYMA) is a specialized program designed exclusively for first-time homebuyers. This initiative offers several advantages, including potentially lower interest rates and reduced closing costs. SONYMA loans become especially appealing when faced with a scenario of significant interest rate increases, providing homebuyers with a more stable and affordable financing
Olear Makes it Clear – Episode 8 – SONYMA Read More »
The transfer tax is a financial obligation calculated as a percentage of the sale price on a real estate parcel, serving as a revenue generator for state and local governments. The funds collected through the transfer tax are commonly designated for specific purposes within the community, contributing to essential services and infrastructure development. Notably, individuals
Olear Makes it Clear – Episode 9 – Transfer Tax Read More »
Private Mortgage Insurance (PMI) is a mandatory requirement imposed by mortgage lenders when a homebuyer makes a downpayment of 20% or less on a conventional loan. This insurance serves as protection for the lender in case the borrower defaults on the loan. It’s important to note that PMI can be eliminated after a certain period
Olear Makes it Clear – Episode 10 – Private Mortgage Insurance Read More »
Appraisal: A property appraisal is a comprehensive assessment conducted by a government-licensed individual who has undergone specialized training. There are two main types of appraisals: residential and commercial. Each type addresses the unique characteristics and considerations of its respective property category. Differences Between Residential and Commercial Appraisals: Residential appraisals focus on properties designed for single-family
Olear Makes it Clear – Episode 11 – Appraisals Read More »
Understanding Competitive Market Analysis (CMA): A Competitive Market Analysis is a comprehensive evaluation of a property’s value based on the current real estate market conditions. Unlike a formal appraisal, which is typically performed by a licensed appraiser, a CMA is often conducted by real estate agents to assist buyers, sellers, and investors in gauging a
Olear Makes it Clear – Episode 12 – Competitive Market Analysis Read More »
What is a Short Sale: A short sale is an alternative to foreclosure, intended for property owners who can no longer make payments and cannot sell through conventional means due to the property’s current market value being less than the outstanding loan amount. Bank Cooperation and Buyer Requirements: Not all banks cooperate with short sales.
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Acceleration Clause: This is used by homebuyers in competitive real estate markets to automatically increase their offer above competing bids up to a specified maximum amount. When submitting an offer on a property, the buyer includes an escalation clause that states they are willing to pay a certain amount above the highest competing offer, up
Olear Makes it Clear – Episode 13 – Acceleration Clause Read More »
The Annual Percentage Rate (APR) is a crucial financial metric associated with loans, especially mortgages. It provides a comprehensive view of the total cost of borrowing by taking into account both the interest rate and certain additional costs associated with the loan. Here are key points about the Annual Percentage Rate: Definition of APR: The
Olear Makes it Clear – Episode 14 – Annual Percentage Rate Read More »