Question: Problem 3 [25 points]: A house with price of $250,000 20% down payment, loan amount $200.000 30-year fixed rate mortgage with interest rate as

Problem 3 [25 points]: A house with price of $250,000 20% down

Problem 3 [25 points]: A house with price of $250,000 20% down payment, loan amount $200.000 30-year fixed rate mortgage with interest rate as follows: Choice 1 2 3 Suppose that there is $2,500 origination cost. Rate 7% 6.75% 6.25 Points 1 3 1 [10 points]: Which choice would you like to choose if you will live in the house for 30 years? 2 [15 points]: Which choice would you like to choose if you will live in the house for 5 years?

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