# The Riveras are negotiating with two banks for a mortgage to buy a house selling for $105,000. The terms at

## Question:

The Riveras are negotiating with two banks for a mortgage to buy a house selling for $105,000. The terms at bank A are a 10% down payment, an interest rate of 4%, a 30-year conventional mortgage, and 3 points to be paid at the time of closing. The terms at bank B are a 20% down payment, an interest rate of 5.5%, a 25-year conventional mortgage, and no points. Which loan should the Riveras select for the total cost of the house to be the least?

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**Related Book For**

## A Survey of Mathematics with Applications

**ISBN:** 978-0134112107

10th edition

**Authors:** Allen R. Angel, Christine D. Abbott, Dennis Runde

**Question Details**

Chapter #

**10**- Consumer MathematicsSection: Section 10.5

Problem: 23

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