Question
Aann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and
Aann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000.
Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront.
Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.
Assuming Ann makes payments for 30 years, which mortgage has the lowest cost of borrowing
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Principles Of Banking
Authors: Allyn C Buzzel
11th Edition
089982689X, 9780899826899
