Question
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $800,000. Mortgage A has a 4.25% interest rate and
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $800,000.
Mortgage A has a 4.25% 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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Fundamentals Of Investments
Authors: Bradford Jordan, Thomas Miller
4th Edition
0073314978, 9780073314976
