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A couple decides that they would qualify for a ARM loan on a $150,000 house. They can get a ARM loan for 10 % down

A couple decides that they would qualify for a ARM loan on a $150,000 house. They can get a ARM loan for 10 % down payment at 4.0 per cent interest.. However, they will also have to purchase mortgage insurance for $1200 per year. They will also be required to pay 1 point for getting the loan. What will their total cost be for the first year not counting the down payment.

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