1. rhonda wants to take out a 30-year loan for $225,000 with a 4.6%
apr to purchase a house. she is considering purchasing 3 points
which will decrease her apr by 0.125% per point. each point will
cost 1% of her loan.
option 1:
$225,000
option 2:
$225,000
cost of house
points purchased:
o points
3 points
cost of points:
$0.00
a. 6,750
4.6%
apr offered by bank
4.6%
apr reduction from points 0%
final apr after points 4.6%
monthly payment
a. i point : 10% of mortage amount ; (1,000 for every 109000)
4.86
c. 0.375
d. 86250