You are buying a house and will borrow $245,000 on a 25-year fixed rate mortgage with monthly payments to finance the purchase.Your loan officer has offered you a mortgage with an APR of 4.80 %. Alternatively, she tells you that you can "buy down" the interestrate to 4.45% If you pay points up front on the loan. A point on a loan is 1% (one percentage point) of the loan value. How many points,at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round your answerto 3 decimal places, e.g., 32.164.)Maximimum points

Mortgage loans are paid by monthly payments and these monthly payment carry the payment for interest…

You are buying a house and will borrow $245,000 on a 25-year fixed rate mortgage with monthly payments to finance the Your loan officer has offered you a mortgage with an APR of 4.80%. Alternatively, she tells you that you can "buy down to rate to 4.45% if you pay points up front on the loan. A point on a loan is 1% (one percentage point) of the loan value. Howe at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round to 3 decimal places, e.g., 32.164.) Maximimum points

You are buying a house and will borrow $245,000 on a 25-year fixed rate mortgage with monthly payments to finance the Your loan officer has offered you a mortgage with an APR of 4.80%. Alternatively, she tells you that you can "buy down to rate to 4.45% if you pay points up front on the loan. A point on a loan is 1% (one percentage point) of the loan value. Howe at most, would you be willing to pay to buy down the interest rate? (Do not round intermediate calculations and round to 3 decimal places, e.g., 32.164.) Maximimum points

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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