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QUESTION 12 A developer is offering home buyers mortgages at 3.5% with a 30 year term. Current rates are 4.20%. The loan terms are based

QUESTION 12 A developer is offering home buyers mortgages at 3.5% with a 30 year term. Current rates are 4.20%. The loan terms are based on monthly compounding and monthly payments. A bank will provide the loans if the developer pays an equivalent amount up front to buy down the interest rate. If a house was sold for $2,000,0do with a 75% loan, how much would the developer have to pay the bank to buy down the loan? 4 points Save

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