The home is $750,000 and you would finance it with an 80% loan-to-value loan. Your mortgage lender has told you that you can borrow for 30 years at 6.55%, but you would have to pay 2 points to get that loan. Based on these terms, what is the effective interest cost?

Answer rating: 100% (QA)

To calculate the effective interest cost we need to consider the interest rate and the points associ... View the full answer