You are buying a house and the mortgage company offers to let you pay a "point" (1.0% of the total amount ofthe loan) to reduce your APR from 6.50% to 6.25% on your $400,000, 30-year mortgage with monthly payments. Ifyou plan to be in the house for at least 5 years, should you do it? (Note: Be careful not to round any intermediatesteps less than six decimal places.)The monthly mortgage payment at 6.50% APR is $ 2528.27. (Round to the nearest cent.)The monthly mortgage payment at 6.25% APR is $ 2462.87. (Round to the nearest cent.)The lower interest rate on the mortgage results in monthly savings of $ 65.4. (Round to the nearest cent.)The PV of the monthly savings is $(Round to the nearest cent.)

Loans are paid by equal and fixed installments and these carry the payment for interest and payment…

You are buying a house and the mortgage company offers to let you pay a "point" (1.0% of the total amour the loan) to reduce your APR from 6.50% to 6.25% on your $400,000, 30-year mortgage with monthly pay you plan to be in the house for at least 5 years, should you do it? (Note: Be careful not to round any intern steps less than six decimal places.) The monthly mortgage payment at 6.50% APR is $ 2528.27. (Round to the nearest cent.) The monthly mortgage payment at 6.25% APR is $2462.87. (Round to the nearest cent.) The lower interest rate on the mortgage results in monthly savings of $ 65.4. (Round to the nearest cent. The PV of the monthly savings is $ (Round to the nearest cent.)

You are buying a house and the mortgage company offers to let you pay a "point" (1.0% of the total amour the loan) to reduce your APR from 6.50% to 6.25% on your $400,000, 30-year mortgage with monthly pay you plan to be in the house for at least 5 years, should you do it? (Note: Be careful not to round any intern steps less than six decimal places.) The monthly mortgage payment at 6.50% APR is $ 2528.27. (Round to the nearest cent.) The monthly mortgage payment at 6.25% APR is $2462.87. (Round to the nearest cent.) The lower interest rate on the mortgage results in monthly savings of $ 65.4. (Round to the nearest cent. The PV of the monthly savings is $ (Round to the nearest cent.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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