You plan to purchase a house for $175,000 using a 15-year mortgage obtained from
ID: 2623398 • Letter: Y
Question
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 and monthly payments. 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.
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 and monthly payments. 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.
Explanation / Answer
a) Option 2: Mortgage rate of 4.75 percent and 2 points
b) Option 1: Mortgage rate of 4.85 percent and 2 points.
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