Question
Suppose you are buying your first house for $350,000.00 and are making a 20% down payment. You have arranged to finance the remaining amount with
Suppose you are buying your first house for $350,000.00 and are making a 20% down payment. You have arranged to finance the remaining amount with a 30-year monthly payment amortized mortgage at a 5.75% nominal interest rate.
Suppose the bank offers you an APR of 4.75% with 1.5% points on this mortgage. Would you accept this option if you plan to upgrade to a better home after 7 years of living in your $350,000 house?
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The New Microfinance Handbook A Financial Market System Perspective
Authors: Joanna Ledgerwood, Julie Earne, Candace Nelson
1st Edition
0821389270, 978-0821389270
