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Please solve all parts A). Option 1: mortgage rate of 7 percent and zero points Option 2: mortgage rate of 6.75 percent and 3 points
Please solve all parts
A). Option 1: mortgage rate of 7 percent and zero points
Option 2: mortgage rate of 6.75 percent and 3 points
B). Option 1: mortgage rate of 7.5 percent and 0.5 points
Option 2: mortgage rate of 7.25 percent and 1 points
You plan to purchase a house for $166,000 using a 15 -year mortgage obtained from your local bank. You will make a down payment of 15 percent of the purchase price. You will not pay off the mortgage early. Assume the homeowner will remain in the house for the full term and ignore taxes in your analysis. a. Your bank offers you the following two options for payment. Which option should you choose? b. Your bank offers you the following two options for payment. Which option should you chooseStep by Step Solution
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