You and your lovely and/or handsome spouse have decided the purchase a new home with a loan

Fantastic news! We've Found the answer you've been seeking!

Question:

You and your lovely and/or handsome spouse have decided the purchase a new home with a loan for $260,000. The mortgage you chose offers a contract rate of 4.5%, a maturity of 30 years, and requires the payment of 3 points. What is the amount you must pay in points?

a. What is the annual effective cost of borrowing for this loan if you make your scheduled payments for the full 30 years?

b. If you plan of moving into a different house after 5 years, what is the effective cost of borrowing?

Related Book For answer-question

Personal Financial Planning

ISBN: 978-1259277184

2nd edition

Authors: Lewis J. Altfest

See More Books

Posted Date: Nov 22, 2019 11:10 AM

See More Questions

A young couple would like to purchase a new home using one of the following mortgages: Mortgage no. 1: 10.5 percent interest with 5 discount points to be paid at time of closing Mortgage no. 2: 11.5...
You visit Best Buy to purchase a new home theater system. You are going to purchase a Blu-ray player, a receiver, and a speaker system at random from among the following brands. (a) Determine the...
You are planning to build a new home with approximately 2,0002,500 gross square feet of living space on one floor. In addition, you are planning an attached two-car garage (with storage space) of...
The FBI Standard Survey of Crimes shows that for about 80% of all property crimes (burglary, larceny, car theft, etc.), the criminals are never found and the case is never solved (Source: True Odds,...
A partial adjusted trial balance for Ramon Company is given in E4-15. Instructions Prepare the closing entries at January 31. 2017. RAMON COMPANY Adjusted Trial Balance January 31, 2017 DebitCredit s...
The following table gives the U.S. crude oil production, in billions of barrels, for selected years from 2010 and projected to 2030. (a) Find the linear function that models the data, with x equal to...
Walt Disney reports the following information for its two Parks and Resorts divisions. Assume Walt Disney uses a balanced scorecard and sets a target of 85% occupancy in its resorts. Using Exhibit...
Martin Buber Co. purchased land as a factory site for $400,000. The process of tearing down two old buildings on the site and constructing the factory required 6 months. The company paid $42,000 to...
(30 Pts.) Convert the following for loop into a while loop n=[] For Loop for x in range(100,0,-1): if x%10==0: n.append(x) print(n) While Loop (Write your answer below)
Reconsider Problem 9.3. Suppose now that the demand at each of the destinations has been reduced by 10, so that the new demands are 20, 30, and 20 at destinations 1, 2, and 3, respectively. Introduce...
Presented below are the condensed income statement of Vital Corporation for the years ended December 31, 2020 and 2019: 2020 5,000,000 4,900,000 3,350,000 1,650,000 675,000 975,000 200,000 1,175,000...
Need to Write a research article on following topic is : a comparative study on security issues between windows based network operating system and linux based network operating system
What advantages are offered by Linux servers versus Windows servers? discuss the types of Linux servers found in networks. What do you consider the most important role of Linux servers in a network?
As services became opportunities for Apple over the past few years but there were growing challenges that Apple has been facing. What are the Challenges of Cook in the short run and in the long run?...
Julia says that Lorena has "no shame, but that is why I love her." How has she become more like Lorena, in a positive way, than she ever thought? How is this a sign of progress for Julia? Use text...
A resident is complaining that the water in her bedroom sink is too hot. The temperature is measuring at 108 degrees F. Nothing, the temperature is fine Notify maintenance to lower the temperature...
Please help me construct an activity on node network diagram for the above Gantt chart using the ES, EF, LS, LF, Act. name and duration notation. Find the critical path and calculate time to...
Is it a breach of fiduciary duty for a director of a real estate investment trust (REIT) negotiating a joint venture on behalf of the REIT with another director for the development of a portfolio of...
Sophia inherited 1,000 shares of IBM that her father's parents bought for her when she was a child. The father's cost was $2 per share at the time of purchase and $84 per share at the time of his...
What borrowing mechanism provides the lowest cost. Why?
Given the following statistics, calculate the mortgage cost percent. Annual mortgage interest ................................. $ 9,000 Annual principal payment ......................................
Who was Phar-Mors flamboyant Chief Executive Officer?
Which of the following generally is not considered something of value? 1. Cash, money or checks 2. Airline miles or hotel credits associated with frequent activity (e.g., frequent flier miles) 3. An...
Can you create a graphic that highlights each incidence where Fairmont was not in compliance with company policy that requires explicit approval of all hours of eighty hours or more?

You and your lovely and/or handsome spouse have decided the purchase a new home with a loan

Question:

Expert Answer:

a Amount of money provided by the lender loan amount value ... View the full answer

Personal Financial Planning

Students also viewed these mathematics questions