Question: How many points must a lender change to bring the contract rate of 4.0% up to 5.0% for a 25-year loan (monthly payments) of 200,000?

How many points must a lender change to bring the contract rate of 4.0% up to 5.0% for a 25-year loan (monthly payments) of 200,000? Assume the bank averages 10 years prior to payoff of the loan and solve to the nearest cent.

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