KEY DEFINITIONS..................................4
EXAMPLES ...........................................10
Date Example ....................................10
Monthly Mortgage (P&I) Payment .....10
Loan Amount......................................11
Loan Amount Based on Sales Price
and Down Payment.........................12
Interest Rate ......................................12
Term of a Loan ..................................13
Setting Tax and Insurance.................14
PITI Payment, Total Payment and
Interest-Only Payment.....................15
Quarterly Payment.............................16
Amortization.......................................17
Bi-Weekly Loans................................18
Appreciation.......................................19
Retirement Savings ...........................20
APR and Total Finance Charges,
Including Mortgage Insurance.........21
ARM Payment — Lifetime Cap .........22
Estimated Tax Savings ......................24
Rent vs. Buy ......................................25
Setting Qualifying Ratios ...................26
Qualifying Loan Amount ....................26
“Restricted” vs. “Unrestricted”
Qualifying.........................................28
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