Problema homeowner can obtain a 250000 30-year fixed-rate, Ask an Expert

Finance

Problem:

A homeowner can obtain a $250,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.25 points.

Required:

Question: If you will keep the mortgage for 30 years, what is the net present value of paying the points (to the nearest dollar)?

Note: Please provide reasons to support your answer.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91163173

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