2 Challenge Question A Mortgage broker offers you a mortgage after netting the down-payment of $160,000.00 for a 15-year mortgage. He notifies you that your credit-report results in a rate of interest (APR) of 10.00%, however he offers you the ability to pay 8 points into the mortgage to reduce the rate of interest. 0 Each Mortgage Point represents 1% of the mortgage balance, which you pay upfront, and every 1.5 points will earn you approximately 0.25% reduction in interest rate on the mortgage. He also comments that there is, of course, his origination fee of $1,500.00 estion To determine whether or not you should pay the points--compute the true adjusted APY of the mortgage. Ruminate on whether you should be careful of the beguiling loan originator as a result of this calculation, he is after all... just trying to get you a better rate, right? (Note, try recalculating with more points, is there an amount of points where adjusted APY>APR?) Select one: O a. 10.14% O b. 7.12% . 9.02% O d. 0.85% Certainty -: OC-1 (Unsure : 6796) OC-3 (Quite sure: >80%) 2 Challenge Question A Mortgage broker offers you a mortgage after netting the down-payment of $160,000.00 for a 15-year mortgage. He notifies you that your credit-report results in a rate of interest (APR) of 10.00%, however he offers you the ability to pay 8 points into the mortgage to reduce the rate of interest. 0 Each Mortgage Point represents 1% of the mortgage balance, which you pay upfront, and every 1.5 points will earn you approximately 0.25% reduction in interest rate on the mortgage. He also comments that there is, of course, his origination fee of $1,500.00 estion To determine whether or not you should pay the points--compute the true adjusted APY of the mortgage. Ruminate on whether you should be careful of the beguiling loan originator as a result of this calculation, he is after all... just trying to get you a better rate, right? (Note, try recalculating with more points, is there an amount of points where adjusted APY>APR?) Select one: O a. 10.14% O b. 7.12% . 9.02% O d. 0.85% Certainty -: OC-1 (Unsure : 6796) OC-3 (Quite sure: >80%)