FINANCIAL UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION Foreign Languages-2 Department Mortgage Loans Margarita V. Ryazantseva PhD, Associate. - презентация

1 FINANCIAL UNIVERSITY UNDER THE GOVERNMENT OF THE RUSSIAN FEDERATION Foreign Languages-2 Department Mortgage Loans Margarita V. Ryazantseva PhD, Associate Professor Personnel Management and Psychology Department Moscow 2016

2 Contents Different types of home loans (The U.S) Interest payments Mortgage loans cost 2

3 Share of mortgage to GDP, % 3

4 Different types of home loans (The U.S.) Home purchase loans Conventional mortgage loans FHA loans (The U.S. Federal Housing Administration) VA (Veteran Affairs) loans USDA (The United States Department of Agriculture) loans Home refinance loans Home equity loans (HELOCs) Reverse mortgages Home construction loans Commercial mortgage loans 4

5 Mortgage loans costs comprise Downpayment Property Mortgage Insurance (PMI) Interest Closing costs 5

6 Downpayment requirements for different types of mortgage loans Type of home loanDownpayment requirements Conventional mortgage loans 20% FHA loans (The U.S. Federal Housing Administration) 3.5% VA loans0% 6

7 Mortgage loans costs comprise Downpayment Property Mortgage Insurance (PMI) Interest Closing costs 7

8 Interest Payments Types of interest rates on home loans The most important deciding metrics Fixed interest rates Adjustable interest rates 8 Credit Score Debt-to-Income Ratio Location

9 Critical Thinking Task Lets imagine: You decided to buy a flat using a mortgage loan. Do you prefer fixed interest rates or do you find adjustable interest rates more appropriate? Why? 9

10 Mortgage loans costs comprise Downpayment Property Mortgage Insurance (PMI) Interest Closing costs 10

11 Closing costs Type of closing costsFees 1. Credit report fees $ Appraisal fees between $250 and $ Origination feesBetween 0.5 to 2 percent of a mortgages total amount 4. Title insurance fees: Lenders title insurance Buyers title insurance $2.50 per $1,000 for a lenders policy $3.50 per $1,000 for a borrowers policy 11

12 Some basic home loan requirements Be 18-years-old or older Have a steady flow of income (either from a job, benefits, subsidiary, or aid) Afford monthly payments given any and all outstanding debts 12

13 The Application Process Personal information Contact information Employment information Bank account information Information on the type of property you hope to purchase 13

14 Conclusion Mortgage loan market … depends on different internal and external factors gives opportunity to buy real estate leads to economic growth 14

15 Any questions??? 15

16 Q & AQ & A 16

17 Q1. Does a mortgage loan refer to money that is lent specifically for the purchase of real estate?

18 Q 2. What kind of mortgage is more popular in Russia ? Why? The market share of different mortgage types in Russia, %

19 Q 3. There are three types of interest rates on home loans, arent there?

20 Q 4. How do you think mortgage market in Russia is developing?

21 Q 5. Does the period of 2005 till 2015 show the increase of share of mortgage to GDP in Russia, or does the trend indicate the decrease at that time?

22 Choose 2 correct answers: The most popular kinds of mortgage loan in USA are: a.Conventional mortgage loans b.Reverse mortgages c.Home refinance loans d.Home construction loans

23 Contact information