Property Types
Pertaining to residential mortgages and their risk based pricing methods, the Property Type is sub-categorized as follows:
- Single Family Residence (SFR)
- Multi-Family 2-4 Units (MF)
- Townhome/Condominium (TC)
SFRs are considered to have the highest dollar value per square foot and are thus the most favorably priced of the property types in the eyes of the lending institution. The property is stand alone, or 'detached' from other property.
Multi-family and townhome/condominiums are typically 'negatively priced', where the lender will assess a .5% to .75% increase in the actual interest rate or the price of an interest rate, due to their relative lower dollar per square foot values.
Read more about this topic: Risk-based Pricing
Famous quotes containing the words property and/or types:
“Open the doors of opportunity to talent and virtue and they will do themselves justice, and property will not be in bad hands.”
—Ralph Waldo Emerson (1803–1882)
“Science is intimately integrated with the whole social structure and cultural tradition. They mutually support one other—only in certain types of society can science flourish, and conversely without a continuous and healthy development and application of science such a society cannot function properly.”
—Talcott Parsons (1902–1979)