Topic 4 Real Estate Financing

 When people cannot afford to buy a property in full sum they will use loans to pay for the real estate. Interest is charged to the borrower as a fee for using money before they have earned it. That interest goes to the lender as a reward for investing and not spending the money it has earned.
 there are adjustable rate mortgages where the interest rate can vary with conditions, and there are fixed rate mortgages, where the interest rate will not vary. The lender has the option to refinance there mortgage where an old loan is retired with the proceeds of a new loan on the same property. When refinancing benefits can include a lower interest rate or smaller monthly payments.

http://www.youtube.com/watch?v=XWBYnFIoOyU

This video helps its viewers decide when is the right time to refinance a mortgage. It is excersised when the holder of the loan is in some kind of economic hardship. The narrator then walkes the audience through the way to go about refinancing their loan.

 http://www.youtube.com/watch?v=a58PSBX7BSY

This video does a good job in explaining the role of interest rates and how they apply towards mortgages. The video uses pictures and allows the opportunity to take notes. It illustrates the basic uses and types of loans.

Topic 3 Overview of Real Estate Finance

Real estate finance provides for the procurement and use or funds in regards to real estate. The finance aspect of real estate can be used to determine value such as with the discounted cash flow for the income approach or can be used to determine the solvency of a borrower. Some of the major employers of real esate finance are mortgage associations and lending institutions. Some of the trade organizations include Real Estate Finance Association (REFA).

http://www.youtube.com/watch?v=gi2uH3YxohU
This video even though it is a little long is a great clip that clearly and vigorously illustrates the vulnerability of the financial system to crisis. The narrator describes how the crisis of the financial system is so easily thrown off by the deeds of the real estate sector of finance.

http://www.springerlink.com/content/rk4q0p4475vr3473/
This article attacks the institution of real estate finance by showing how the use of foreclosures bring a community down. The author seems to see that even though the home owner cant pay their mortgage it is not their fault. well it is. We can agree though that the fact that the community suffers from foreclosures is true but the cause can be seen more macro-scopically. If an area is suffering economically, it can be seen by the rate of foreclosures.

Topic 2 Overview of Real Estate Appraising

An appraisal is an estimate of the value and a means to convey that estimate to the appraisal user. Appraisals are used in any kind of business transaction where a value is needed for a peice or real estate. They can be used in buying and selling actions as a base for price. They can also be used for property tax evaluation or even be used for insurance companies to determine an insurable amount. The need for a third party to assess value will always be needed for business transactions concerning real estate. The third party appraisor is someone that can be trusted to give an entity value.

http://www.youtube.com/watch?v=wEqjUInKXOo
This video discusses the roles and the process of a real estate appraisal. The video does a good job at what specifies a useful appraisal and how to use the value gained in the appraisal. The narrator also does a good job of discribing the best way to give the most value to a homeowner.


http://www.youtube.com/watch?v=zdZw57gBUqY&feature=related
This video goes into more depth of the home inspection process. It illustrates how the appraiser assigns value to what it inspects.

TOPIC 1 Overview of a Real Estate Appraiser

Appraisers estimate and assess the value of property. Although appraisers and assessors of real estate work in offices, they spend a large part of their day in the field, conducting site visits. Most work full time during regular business hours. Most appraisers of residential real property must have at least an associate’s degree. Appraisers who appraise commercial real property must have at least a bachelor’s degree. In addition, appraise must be licensed or certified, but requirements vary by state.

http://www.youtube.com/watch?v=aZ8BdzLV-uM
In this article, the narrator discusses the uses and needs for real estate appraisers. The narrator also describes how to become an appraiser.

http://www.youtube.com/watch?v=5--Y8nl1pSw&feature=related
This video shows several different real life appraisers and they show some of the difficulties of their job. Some of the negative aspects of the day-to-day job as an appraiser are an important part in evaluating a job. It is important to focus on the good as well as the bad in job evaluation.