$535,000 $55,000 2 points 2 points 6.00% 2 Home price 3 Equity 4 Loan amount 5 Loan to Value 6 Annual Interest Rate 7 Term to maturity 8 Term for amortization 9 Payment 10 11 Outstanding loan balance @ the EOY 3 12 13 Future sales price 14 30 years 30 years ($1,800) $0.00 2 points 2 points You are purchasing a $535,000 home with a $55,000 down payment. You lender will make you a loan at 6% annually for 30 years (term to maturity and term for amortization) with a fixed monthly payment of $1,800, which is less than the calculated payment using the loan's interest rate and term for amortization)