Question
In: Finance
You plan to purchase a house for $247,000 using a 15-year mortgage obtained from your local...
You plan to purchase a house for $247,000 using a 15-year
mortgage obtained from your local bank. You will make a down
payment of 20 percent of the purchase price. You will not pay off
the mortgage early. Assume the homeowner will remain in the house
for the full term and ignore taxes in your analysis.
a. Your bank offers you the following two options
for payment. Which option should you choose?
- Option 1: Mortgage rate of 6.8 percent and zero points.
- Option 2: Mortgage rate of 6.65 percent and 1.5 points.
b. Your bank offers you the following two options for payments. Which option should you choose?
- Option 1: Mortgage rate of 6.75 percent and 0.5 points.
- Option 2: Mortgage rate of 6.58 percent and 1 points.
Solutions
Expert Solution
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SOLVED WITH BA II PLUS CALCULATOR
jeff jeffy answered 1 year agoRelated Solutions
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