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Nou are hying a hause and wit borrow $ 2 2 0 0 0 0 on a 2 4 - weat fined rafe morlgage with
Nou are hying a hause and wit borrow $ on a weat fined rafe morlgage with monthly payments la finance the purtiast. Your loan alficer has offered you a morigage with an APR of percent. Allernatively, she tells you that you can 'huy dowri" the inderest rate to percent if you pay paints up front on the Jodr. A point on a loan is percent one percentage paint, af the ban value.
As you are evaulating the mortgage, you also realize that you belkeve that you wil only fye in the house for years before seling the house and buying another house. This means that in years, you will pay aff the remaining balance of the oniginal mortage. What ls the maximum number of points that you would be wilting to pay? Do nat round imbermediate cniculations and round your answer to decimal places, ag
Answer is complete but not eatirely carrect.
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