Question: Suppose that you find a mortgage offering the same basic terms and for the same amount, but offers a 5.25% rate and a $1500 rebate

Suppose that you find a mortgage offering the same basic terms and for the same amount, but offers a 5.25% rate and a $1500 rebate at closing. What is the effective cost of borrowing for this loan assuming that you plan to move into a new house after five years?

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