Compare Mortgage Quotes

Sam · Posted: Sat Apr 10, 2004 4:16 am Post subject: Common forms of option

Option is a provision in a contract that gives the option holder, the right and not the obligation to perform a specific transaction with another party, the option issuer. The contract is based on certain terms agreed upon by both the parties. For instance, the owner of a property may sell an option to another party for the purchase of a property. A lease may consist of a provision granting the renter an option to extend the lease for an additional year.

The common forms of options are:

Call option:
This gives an option holder the right to purchase an underlier, which is the asset delivered under the contract. The underlier is purchased usually at a specified price. In case of a mortgage deed, the call option allows the lender to call the mortgage due and payable at any time before the end of the loan term.
Put option:
The put option offers the option holder the right to sell an underlier at a pre-determined price. It gives a buyer the right to sell a commodity to the seller of the option at a certain time for a certain price. Under the put option, the seller is obligated to purchase the asset at the specified price.

Guest

If I an getting a loan for a modular home, can the mortgage company appraise the property with the home on it and divide it into the loan value? Or would they take the property used a collateral as a percent of the loan value to calculate weather I have to pay PMI?

Posted: Tue Feb 16, 2010 1:53 am Post subject:

Ray...if you're using the property as the collateral to get the mortgage, then the lender will appraise the property in order to give you the loan. If you are unable to pay 20% downpayment, you would be liable for private mortgage insurance.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

Common forms of option