Dc Fawcett is a real estate investor and speaker who shares tips on real estate virtually. This is a set of real estate terms as defined and elaborated by him.
Broker price opinion
Broker price opinion is the methodology to estimate the potential selling price of a home and it is done by a broker.
It is used for real estate owned properties, pending foreclosures, asset evaluation and bookkeeping, appeal to annul lender’s mortgage insurance and so on. It is determined based on the
- Structure type of the home, size, room use, age, lot size and parking.
- Worth of like properties in the neighborhood.
- The amount of staging and renovation needed to make the property saleable.
- Degree of agreeability with local zoning necessities.
It is a loan which has a principal amount equal to 125% of the initial property value
This results in higher interest rates and interest will consume a chunk of your mortgage payments every month. Then after a period of the loan, it comes down. This is obviously very unpredictable in nature.
The 2-1 Buydown is a set of 2 initially reduced interest rate payments which increase step by step until a constant interest rate is reached.
This is offered as a loan motivator by the constructor or it is paid by the debtor initially to qualify for the loan.