Structuring the loan

The structuring course: how leverage moves both rate and ratio, when interest-only earns its cost, the buydown break-even, prepayment structures, fixed versus adjustable, and every dollar you need to close.

6 LESSONS · 26 MIN · 0/6 DONE

1. 3.1

   1. Leverage and LTV

   A walk down the pricing grid: what each LTV step costs, what it buys back in ratio, and how to find the efficient point.

   4 MIN

2. 3.2

   2. Interest-only

   What the IO period does to your ratio, your cash flow and your balance — and the payment shock at the end of it.

   4 MIN

3. 3.3

   3. Points and buydowns

   The break-even arithmetic, when the trade pays, and why your prepayment term is part of the answer.

   4 MIN

4. 3.4

   4. Prepayment penalties

   Stepdown structures, what each one costs in rate, how the penalty is calculated, and how to pick one against your hold period.

   6 MIN · REFERENCE PAGE

5. 3.5

   5. Fixed vs ARM

   How adjustable-rate mortgages work, the index-margin-cap machinery, and why most DSCR files land on fixed.

   4 MIN

6. 3.6

   6. Reserves and cash to close

   Down payment, closing costs, escrow seed, prepaid interest and reserves — the five buckets, and what counts as an acceptable source.

   4 MIN