Question
A homeowner can obtain a $150,000 thirty year fixed rate mortgage at a rate of 7.5% with zero points or at a rate of 7.0%
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A homeowner can obtain a $150,000 thirty year fixed rate mortgage at a rate of 7.5% with zero points or at a rate of 7.0% with 2 points. If you will keep the mortgage for 30 years, what is the net present value of paying the points (to the nearest dollar)?
a. $5,631
b. $7,646
c. $4,646
d. $13,667
e. $18,313
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Following Question 27, how long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is invested monthly?
a. 30 years
b. 6.04 years
c. 4.91 years
d. 5,40 years
e. 3.33 years
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Following Question 27, how long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?
a. 4.91 years
b. 3.33 years
c. 6.04 years
d. 30 years
e. 5.40 years
A homeowner can obtain a $150,000 thirty year fixed rate mortgage at a rate of 7.5% with zero points or at a rate of 7.0% with 2 points. If you will keep the mortgage for 30 years, what is the net present value of paying the points (to the nearest dollar)?
| a. | $5,631 | |
| b. | $7,646 | |
| c. | $4,646 | |
| d. | $13,667 | |
| e. | $18,313 |
Following Question 27, how long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is invested monthly?
| a. | 30 years | |
| b. | 6.04 years | |
| c. | 4.91 years | |
| d. | 5,40 years | |
| e. | 3.33 years |
Following Question 27, how long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?
| a. | 4.91 years | |
| b. | 3.33 years | |
| c. | 6.04 years | |
| d. | 30 years | |
| e. | 5.40 years |
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