Kennesaw Credit Union offers a 4.25%, 15-year mortgage. Sadie wants to borrow $300,000 and purchase enough negative
Question:
Kennesaw Credit Union offers a 4.25%, 15-year mortgage. Sadie wants to borrow $300,000 and purchase enough negative points to eliminate her $9,000 closing costs. Each point increases her APR by 0.125% and reduces the bank's closing costs by 1% of the principal.
a. How many points will she need?
b. What will her new APR be?
c. What is the breakeven time for Sadie’s loan?
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Related Book For 
Financial Algebra Advanced Algebra With Financial Applications
ISBN: 9781337271790
2nd Edition
Authors: Robert Gerver, Richard J. Sgroi
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