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30 years with a) 6 % compounded monthly with no point 1 b) 6– % compounded monthly with 1 point: 4. c) 6% compounded monthly with 2 points $

30 years with a) 6 % compounded monthly with no point 1 b) 6– % compounded monthly with 1 point: 4. c) 6% compounded monthly with 2 points $

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Many mortgage company allow you to "buy down" your interest rate of your loan by buying points. A point is equal to 1% of your mortgage amount (or $1,000 for every $100,000). You're essentially paying some interest up front in exchange for a lower interest rate over the life of your loan. Find the following payments and total cost (including points) of a $170,000.00 that is borrowed for 30 years with 1 a) 6- % compounded monthly with no points $ The total cost would be $ 2 1 b) 6– % compounded monthly with 1 point $ 4 The total cost would be $ c) 6% compounded monthly with 2 points $ The total cost would be $
Transcribed Image Text:Many mortgage company allow you to "buy down" your interest rate of your loan by buying points. A point is equal to 1% of your mortgage amount (or $1,000 for every $100,000). You're essentially paying some interest up front in exchange for a lower interest rate over the life of your loan. Find the following payments and total cost (including points) of a $170,000.00 that is borrowed for 30 years with 1 a) 6- % compounded monthly with no points $ The total cost would be $ 2 1 b) 6– % compounded monthly with 1 point $ 4 The total cost would be $ c) 6% compounded monthly with 2 points $ The total cost would be $
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