Ann, Bob, Chris and Dave apply for the same loan amount. Assuming that the only two factors that make a difference in their loan applications are loan-to-value ratio (LTV) and discount points (DPs), who is most likely to be offered the highest rate on the mortgage and who is most likely to be offered the lowest such rate? Ann: LTV = 80, DPs = 2 Bob: LTV = 90, DPs = 2 Chris: LTV = 80, DPs = 3 Dave: LTV = 90, DPs = 3

Ann, Bob, Chris and Dave apply for the same loan amount. Assuming that the only two factors that make a difference in their loan applications are loan-to-value ratio (LTV) and discount points (DPs), who is most likely to be offered the highest rate on the mortgage and who is most likely to be offered the lowest such rate? Ann: LTV = 80, DPs = 2 Bob: LTV = 90, DPs = 2 Chris: LTV = 80, DPs = 3 Dave: LTV = 90, DPs = 3

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter6: Building And Maintaining Good Credit

Section6.2: Three Ways To Set Your Own Debt Limit

Problem 2CC

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