Randi can get: a fully amortizing 30 year fixed rate mortgage with monthly payments for $500,000 at an annual interest rate of 9%, compounded monthly. Or a fully amortizing 15 year fixed rate mortgage with monthly payments for $500,000 at an annual interest rate of r, compounded monthly. What does the interest rate on the 15 year fixed rate mortgage need to be so that Randi s payment on the 15 year fixed rate mortgage is the same as the 30 year fixed rate mortgage?

Betti gets a fully amortizing 30 year fixed rate mortgage with monthly payments for $1,000,000. If the annual interest rate is 3.25%, compounded monthly, and Betti must pay 1.75 points in closing costs, what will Ann s true APR be