[+] to determine the regular payment amount, rounded to the nearest dollar. Conside lowing pair of mortgage loan options for a $145,000 mortgage. Which mortgage loan has the larger tot st (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 6.25% with closing costs of $2200 and 1 point. Mortgage B: 15-year fixed at 4.5% with closing costs of $2200 and 5 points. ב oose the correct answer below and fill in the answer box to complete your choice
[+] to determine the regular payment amount, rounded to the nearest dollar. Conside lowing pair of mortgage loan options for a $145,000 mortgage. Which mortgage loan has the larger tot st (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A: 15-year fixed at 6.25% with closing costs of $2200 and 1 point. Mortgage B: 15-year fixed at 4.5% with closing costs of $2200 and 5 points. ב oose the correct answer below and fill in the answer box to complete your choice
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 7FPE: Calculating interest and APR of installment loan. Assuming that interest is the only finance charge,...
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Question
![Use
P
ÞA
to determine the regular payment amount, rounded to the nearest dollar. Consider the
following pair of mortgage loan options for a $145,000 mortgage. Which mortgage loan has the larger total
cost (closing costs + the amount paid for points + total cost of interest)? By how much?
Mortgage A: 15-year fixed at 6.25% with closing costs of $2200 and 1 point.
Mortgage B: 15-year fixed at 4.5% with closing costs of $2200 and 5 points.
Choose the correct answer below, and fill in the answer box to complete your choice.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
OA. Mortgage A has a larger total cost than mortgage B by $
O B. Mortgage B has a larger total cost than mortgage A by $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97d9671a-da8b-4099-86f6-0830ce79a0aa%2F58f9ef5f-4532-4753-b441-ff4c4ee9687f%2Fup95mis_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use
P
ÞA
to determine the regular payment amount, rounded to the nearest dollar. Consider the
following pair of mortgage loan options for a $145,000 mortgage. Which mortgage loan has the larger total
cost (closing costs + the amount paid for points + total cost of interest)? By how much?
Mortgage A: 15-year fixed at 6.25% with closing costs of $2200 and 1 point.
Mortgage B: 15-year fixed at 4.5% with closing costs of $2200 and 5 points.
Choose the correct answer below, and fill in the answer box to complete your choice.
(Do not round until the final answer. Then round to the nearest dollar as needed.)
OA. Mortgage A has a larger total cost than mortgage B by $
O B. Mortgage B has a larger total cost than mortgage A by $
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