The bank offered Annette a $380,000, 30-year mortgage at 3.54%. She is deciding whether to purchase 2
Question:
The bank offered Annette a $380,000, 30-year mortgage at 3.54%. She is deciding whether to purchase 2 points to reduce her APR by 0.25% per point. Each point will cost 1% of the loan value.
a. Calculate her monthly payments with the points.
b. Calculate her monthly payments without the points.
c. Determine the breakeven month.
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Step by Step Answer:
a The monthly payments with points are FV PV x 1in 3800...View the full answer
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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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