You are deciding between the following three $500,000 30-yr fixed rate loans to purchase your house....
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You are deciding between the following three $500,000 30-yr fixed rate loans to purchase your house. Loan A: interest rate of 4.00% and no fees. Loan B: interest rate of 4.00% and $5,000 in fees. Loan C: interest rate of 3.75% and $8,000 in fees. If you plan to stay in your house for 5 years, which loan makes the best sense if your goals was to achieve the lowest APR? Use the following information to help you decide. With an annual interest rate of 4.0%: Your monthly payment is $2,387.08 After 5 years, you will have paid $95,462 in interest. Average balance outstanding during 5 years is 477,311. With an annual interest rate of 3.75%: Your monthly payment is $2,315.58 After 5 years, you will have paid $89,321 in interest. Average balance outstanding during 5 years is 476,380. You are deciding between the following three $500,000 30-yr fixed rate loans to purchase your house. Loan A: interest rate of 4.00% and no fees. Loan B: interest rate of 4.00% and $5,000 in fees. Loan C: interest rate of 3.75% and $8,000 in fees. If you plan to stay in your house for 5 years, which loan makes the best sense if your goals was to achieve the lowest APR? Use the following information to help you decide. With an annual interest rate of 4.0%: Your monthly payment is $2,387.08 After 5 years, you will have paid $95,462 in interest. Average balance outstanding during 5 years is 477,311. With an annual interest rate of 3.75%: Your monthly payment is $2,315.58 After 5 years, you will have paid $89,321 in interest. Average balance outstanding during 5 years is 476,380.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
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