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Assume that the current FHA, mortgage rates are 10% and similar conventional loans are at 10.5%. According o the rule of thumb for discounting, what
Assume that the current FHA, mortgage rates are 10% and similar conventional loans are at 10.5%. According o the rule of thumb for discounting, what will be the number of points required on the FHA mortgage to provide the lender with an approximate yield of 10.5%?
a. 2 points
b. 4 points
c. 6 points
d. 8 points
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