The Riveras are negotiating with two banks for a mortgage to buy a house selling for $105,000.

Question:

The Riveras are negotiating with two banks for a mortgage to buy a house selling for $105,000. The terms at bank A are a 10% down payment, an interest rate of 4%, a 30-year conventional mortgage, and 3 points to be paid at the time of closing. The terms at bank B are a 20% down payment, an interest rate of 5.5%, a 25-year conventional mortgage, and no points. Which loan should the Riveras select for the total cost of the house to be the least?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

A Survey of Mathematics with Applications

ISBN: 978-0134112107

10th edition

Authors: Allen R. Angel, Christine D. Abbott, Dennis Runde

Question Posted: