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You are taking out a fully amortizing loan for $200,00 over 30 years. You can choose between a loan at 5% with 3 points and

You are taking out a fully amortizing loan for $200,00 over 30 years. You can choose between a loan at 5% with 3 points and a loan at 5.25% with 1 point. If you plan to stay in the home for 7 years, which loan will give you the lower effective borrowing cost?

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