Finance
In Ohio, a 'swing loan' (bridge loan) allows a homeowner to:
ATransfer their mortgage to a new property
BAccess short-term financing to purchase a new home before selling their current home✓ Correct
CConsolidate multiple mortgages into one
DBuy a property at a swing price below market
Explanation
A swing/bridge loan is short-term financing that allows a homeowner to purchase a new property using equity from their current home before it sells, 'bridging' the gap between the two transactions.
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Key Terms to Know
Loan-to-Value Ratio (LTV)
The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
Math Concepts
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