You need a loan of $110,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. = Choice 1: 15-year fixed rate at 4% with closing costs of$1600 and no points. Choice 2: 15-year fixed rate at 3.5% with closing costs of$1600 and 3 points. What is the monthly payment for choice 1? $_______ (Do not round until the final answer. Then round to the nearest cent as needed.) What is the monthly payment for choice 2? $_____ (Do not round until the final answer. Then round to the nearest cent as needed.) What is the total closing cost for choice 1? $_____ What is the total closing cost for choice 2? $_____ Why might choice 1 be the better choice? A.The monthly payment is lower. B. The closing costs are lower. C. The monthly payment is higher. D. The closing costs are higher. Why might choice 2 be the better choice? A. The closing costs are lower. B. The monthly payment is lower C. The monthly payment is higher. D. The closing costs are higher
You need a loan of $110,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. =
Choice 1: 15-year fixed rate at 4% with closing costs of$1600 and no points.
Choice 2: 15-year fixed rate at 3.5% with closing costs of$1600 and 3 points.
What is the monthly payment for choice 1? $_______
(Do not round until the final answer. Then round to the nearest cent as needed.)
What is the monthly payment for choice 2? $_____
(Do not round until the final answer. Then round to the nearest cent as needed.)
What is the total closing cost for choice 1? $_____
What is the total closing cost for choice 2? $_____
Why might choice 1 be the better choice?
A.The monthly payment is lower.
B. The closing costs are lower.
C. The monthly payment is higher.
D. The closing costs are higher.
Why might choice 2 be the better choice?
A. The closing costs are lower.
B. The monthly payment is lower
C. The monthly payment is higher.
D. The closing costs are higher.
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