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Assume you want to buy a house priced at $250,000. You make 20% down payment and take a 30 year mortgage for the balance. The

  1. Assume you want to buy a house priced at $250,000. You make 20% down payment and take a 30 year mortgage for the balance. The mortgage bank quotes you interest rate of 3.6% without a point and interest rate of 3.5% for a point fee of $2,500. Which rate will you take? Show calculations.

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