A lender is offering you a $$315,000$ FRM at $4\mathrm{.}9\%.$ What is your net loan amount if you agree to $1\mathrm{.}5$ points?

Using information from problem #$5,$ what is your effective borrowing cost $($EBC$),$ shown as a $\%,$ if you plan to move in $5$ years?

Situation: a lender is offering you a $$315,00030-$year FRM at $4\mathrm{.}9\%.$

This is how you solve for monthly payment over life of loan:

$PV=315,000$

$I=\frac{4\mathrm{.}9}{12}$

$N=3012=360$ months

$FV=0(\frac{b}{c}$ fully amortizes $)$

$PMT=$$$1,671\mathrm{.}79$

If a lender is offering a $$285,00030-$year FRM at $5\mathrm{.}5$ percent if you agree to pay $1$ additional discount point $(2\mathrm{.}5$ total instead of their regular $1\mathrm{.}5),$ then:

A$.)$ What is your monthly payment?

B$.)$ What is your net loan amount?

C$.)$ What is your EBC if you plan to move in $5$ years?