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How many point must a lender charge to bring the contract rate of 4.0% up to...

How many point must a lender charge to bring the contract rate of 4.0% up to 5.0% for a 25-year loan (monthly payments) of $200,000? Assume the bank averages 10 years prior to payoff loan and solve to the nearest cent.

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Expert Solution

Points to charge are 6.91

Calculation is:

jeff jeffy answered 2 years ago
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