Question 16

Based on the following information of mortgage choices, identify NOT properly priced mortgage(s)

Mortgage Choice Rate Points Actual cost for holding 30 years Actual cost for holding 1 year

a 4.5% 0 4.61% 5.82%

b 4.75% 1 4.69% 6.91%

c 4.0% 0.5 4.15% 5.80%

d 3.5% 3 3.85% 8.09%

Mortgage Choice b

Mortgage Choices b and c

Mortgage Choices b and d

Mortgage Choices c and d