Mortgages

• Fixed installment loans, but for
  • Much longer periods (usually)
  • Much more money (usually)
• We will only deal with fixed rate, conventional mortgages.
• There are MANY other types of mortgages available.
• Each point points is 1% of the amount financed.
• Points are prepaid interest.
• You qualify for a loan if the payments + taxes + insurance < 28% of adjusted monthly income.
• Adjusted monthly income is gross monthly income - fixed payments with more than 10 months remaining.
• Table 11.5 or formula.