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The Fritzes are buying a house that sells for $85,000. The bank is requiring a minimum down payment of 20%. To obtain a 25-year mortgage
The Fritzes are buying a house that sells for $85,000. The bank is requiring a minimum down payment of 20%. To obtain a 25-year mortgage at 8.0% interest, they must pay 2 points at the time of closing.
a) Determine the required down payment.
b) Determine the amount of the mortgage on the property with the 20% down payment.
c) Find the cost of 2 points on the mortgage.
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