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A homeowner can obtain a $300,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent
A homeowner can obtain a $300,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.5 points. What is the monthly savings if the homeowner chooses to purchase points? (Hint: compare the monthly payments with and without points purchased) Round your answers to 2 decimal places. Show calculation steps please!
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