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Ann has just signed a 30-year fixed-rate loan at 6% with no discount points. Bob wonders what interest rate on a 30-year fixed-rate loan for
Ann has just signed a 30-year fixed-rate loan at 6% with no discount points. Bob wonders what interest rate on a 30-year fixed-rate loan for the same amount he should be charged when he wants to pay two discount points so that his loan is financially equivalent to that of Anns assuming that both are planning to live in their houses for at least 30 years?
A. | 5.73% | |
B. | 5.77% | |
C. | 5.85% | |
D. | 5.81% | |
E. | 5.65% | |
F. | 5.69% |
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