Eddy's Blog

Here is a more detailed example:If one months interest is $50.00 on a five year, straight- interest only note, and the interest rate on the note is 10 % per year, what is the amount of the loan? Known : I (Interest Income) , P (Principle) and T (Time)I = $600.00 ( Interest Income bank made on the...

Now that we know what formulas to use and when to use them lets show how it works..... Juanito Borrowed $6,000.00 for one year and paid $520.00 in interest. What was the interest rate he paid? Known: I (Interest Income), P (Principle) , and T (Time) P = $6,000.00 ( Principal amount of loan) I = $...

The charge for the use of money is called interest. The rate of interest that is charged will determine the total dollar amount of the payments. When money is borrowed, both the principal and interest must be repaid according to the agreement between the borrower and the selcted lender. (P) Princ...

Here is another example which will help in he understanding of how commissions earned are calculated:Jenny, a real estate broker , listed a parcel of land for $500,000.00 , with a commission of 10%. A few days later he presented an offer which was 5 % less than the listed price. The seller agreed...

How do realtors calculate their commisison when selling or finding a home for a customer? When signing closing escrow or loan documents this amount is just stated but not explained. Here is a sample scenario :John , a real estate salesperson , found a buyer for a $600,000.00 house, The seller agr...

Seller Financing Disclosure Statement (continued).......The arranger of credit must deliver a disclosure statement as soon as possible before the execution of any note and security document. The statement must be signed by the arranger of credit, the buyer and seller, who are each to receive a co...

Mortgage Loan Disclosure Statement (continued).......If the loan is a federally related loan controlled by RESPA, real estate mortgage brokers do not have to deliver the MLDS as long as the borrower recieves a good faith estimate of settlement costs as required under RESPA and all disclosures req...

Mortgage Loan Disclosure Statement (Continued).....The required statement , known as the Mortgage Loan Disclosure Statement (MLDS) , must be in a exact form approved by the Real Estate Commisioner. The MLDS needs to disclose expected maximum costs and expenses of making the loan which are to be p...

Real Property Loan Law - Article 7 - California (continued)The law requires anyone negotiating a loan to provide a Mortgage Loan Broker`s Statement , often called a (Mortgage Loan Disclosure Statement) to a prospectivee borrower, with information concerning all important features of a loan to be ...

Real Property Loan Law - Article 7 - CaliforniaMistreatment of consumers by corrupt agents created the Real Property Loan Laws legislation was passed to correct this situation. The Real Property Loan Law now applies to loans secured by first trust deeds under $30,000.00 and by second trust deeds ...