Question
You plan to purchase a house for $115,000 using a 30-year mortgage from your local bank. You will make a down payment of 20% of
You plan to purchase a house for $115,000 using a 30-year mortgage from your local
bank. You will make a down payment of 20% of the purchase price.
a.
Your bank offers you the following two options for payment:
Option 1: Mortgage rate of 9% and zero discount points.
Option 2: Mortgage rate of 8.85% and two discount points.
Which option would you choose?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
