You plan to purchase a house for $115,000 using a 30-year mortgage obtained from your local...

You plan to purchase a house for $115,000 using a 30-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. (LG 7-3) a. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 9 percent and zero points. Option 2: Mortgage rate of 8.85 percent and 2 points. Which option should you choose? b. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 10.25 percent and 1 point. Option 2: Mortgage rate of 10 percent and 2.5 points. Which option should you choose?

please show in excel

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jeff jeffy answered 1 year ago

You plan to purchase a house for $200,000 using a 30-year mortgage obtained from your local...

You plan to purchase a house for $200,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 25 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 5.60 percent and...

You plan to purchase a house for $230,000 using a 30-year mortgage obtained from your local...

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You plan to purchase a house for $175,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 25 percent of the purchase price. You will not pay off the mortgage early. (LG 7-3) a. Your bank offers you the following two options for payment: Option 1: Mortgage rate of 5 percent and zero points. Option 2: Mortgage rate of 4.75 percent and 2 points. Which option should you choose? b. Your bank offers...

You plan to purchase a house for $200,000 using a 15-year mortgage obtained from your local...

You plan to purchase a house for $200,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 10 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 6.25 percent and...

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You plan to purchase a house for $127,000 using a 15-year mortgage obtained from your local bank. You will make a down payment of 10 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 5.75 percent and...

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