You need a loan of $155,000 to buy a home. Choice 1: 30-year fixed rate at 7% with closing costs of $2600 and no points. Choice 2: 30-year fixed rate at 6.5% with closing costs of $2600 and 2 points. 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 closing costs are lower. • B. The closing costs are higher. • C. The monthlv payment is lower. • D. The monthly payment is higher. Why might choice 2 be the better choice? • A. The closing costs are lower. • B. The closing costs are higher. C. The monthly payment is lower. © D. The monthly payment is higher.
You need a loan of $155,000 to buy a home. Choice 1: 30-year fixed rate at 7% with closing costs of $2600 and no points. Choice 2: 30-year fixed rate at 6.5% with closing costs of $2600 and 2 points. 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 closing costs are lower. • B. The closing costs are higher. • C. The monthlv payment is lower. • D. The monthly payment is higher. Why might choice 2 be the better choice? • A. The closing costs are lower. • B. The closing costs are higher. C. The monthly payment is lower. © D. The monthly payment is higher.
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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You need a loan of $155,000 to buy a home. Choice 1: 30-year fixed rate at 7% with closing costs of $2600 and no points.
Choice 2: 30-year fixed rate at 6.5% with closing costs of $2600 and 2 points.
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 closing costs are lower.
• B. The closing costs are higher.
• C. The monthlv payment is lower.
• D. The monthly payment is higher.
Why might choice 2 be the better choice?
• A. The closing costs are lower.
• B. The closing costs are higher.
C. The monthly payment is lower.
© D. The monthly payment is higher.
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