Question
You plan to purchase a house for $195,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20
You plan to purchase a house for $195,000 using a 30-year mortgage obtained from your local bank. You will make a down payment of 20 percent of the purchase price. You will not pay off the mortgage early. Your bank offers you the following options for payments:
OPTION 1: mortgage rate of 5.5 percent and zero points
OPTION 2: mortgage rate of 5.35 percent and 1.5 points.
Which should you choose?
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Risk Sensitive Investment Management
Authors: Mark H A Davis, Sébastien Lleo
1st Edition
9814578037, 978-9814578035
