Question
As a borrower, you have the option to choose between two 30-year, monthly-payment loans: 7% interest rate with 3 points, versus 7.5% interest with one-half
As a borrower, you have the option to choose between two 30-year, monthly-payment loans: 7% interest rate with 3 points, versus 7.5% interest with one-half point.
(a) Which loan option would you choose if you had a 10-year expected prepayment horizon?
(b) Which would you choose if you expect to pay off this loan in 5 years?
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Meetings Expositions Events And Conventions An Introduction To The Industry
Authors: George Fenich
5th Edition
0134735900, 9780134735900
