Question
You want to buy a house of your dream and you have three such houses to consider which are very much alike in all aspects
You want to buy a house of your dream and you have three such houses to consider which are very much alike in all aspects except for the price tag and the financial terms on the mortgage.
House A: price $300,000, LTV 90, 7.10 percent interest rate, 30-year loan, monthly payments, full amortization, no other gimmicks attached.
House B: price $295,000, LTV 89, 7.40 percent interest rate, 30-year loan, monthly payments, full amortization, no other gimmicks attached.
House C: price $297,000, LTV 90, 7.20 percent interest rate, 30-year loan, monthly payments, full amortization, no other gimmicks attached.
Based on the information above and ignoring any other factors, buying which house represents the best financial decision?
| A. | House A | |
| B. | House B | |
| C. | House C | |
| D. | Do not know |
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Essentials Of Health Care Finance
Authors: William O. Cleverley, James O. Cleverley, Paula H. Song
7th Edition
0763789291, 978-0763789299
