11.5 Mortgages

• Points are prepaid interest.
• One point is 1% of the amount financed.
• You qualify for a loan if your payments (of everything) are less than 38% of your adjusted monthly income
  • Gross monthly income
  • Subtract any regular payments with more than 10 months remaining.
• Table 11.4, page 649
• Amotization schedule.
• Do problems P 654: 7, 11, 15, 17, 19