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20. You have found another dream home and have qualified for a $450,000 loan. You have been given to options for the terms of your

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20. You have found another dream home and have qualified for a $450,000 loan. You have been given to options for the terms of your mortgage. Which option should you take? Show your work Mortgage A Loan term: 30 years Annual interest rate: 6 percent Monthly payments Up-front financing costs: $6000 Discount points: 2 Mortgage B Loan term: 15 years Annual interest rate: 5.5 percent Monthly payments Up-front financing costs: $7000 Discount points: 3 Based on the effective borrowing cost, which loan would you choose

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