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Joe is shopping for a new home. He is trying to decide how large his down payment should be. Joe is earning 2.5 percent APY

Joe is shopping for a new home. He is trying to decide how large his down payment should be. Joe is earning 2.5 percent APY in his savings account, whereas his mortgage loan will cost him 5 percent APR. If Joe has the money available in his savings account, he should

purchase mortgage insurance.

reduce the down payment on the house.

increase his down payment on the house.

not buy the house right now.

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