If I am planning to buy a house in McKinney, AR for $300,000. The lender offers me the following terms: I pay 20% down, get a mortgage for the rest. Mortgage rate will be 8% with zero points. Or Mortgage rate will be 7.75% with two points. If I choose the two point option, how much will be my payment as compared with option 1 at 8%. Assume I have 30 years of monthly payment

Q: Explain which is the better option.

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Loans

A loan is a term that we are all familiar with. The processing of loans is one of the most important functions of a bank. It keeps our economy stable and facilitates the implementation of monetary policies. Let's take a look at the different forms of loans and get some answers to some common questions.