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
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 15P
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