Mathematics, 26.03.2020 04:32 lpssprinklezlps
20. Howard must decide if he will purchase discount points for his mortgage. Two discount points
which cost 2% of the mortgage amount will result in a 0.5% decrease in the interest rate. The
terms of the mortgage are shown below.
Howard's Mortgage
$423.000
30 year fixed
5% annual rate
O discount points
M = $2,270.76
4.5% annual rate
2 discount points
M = $2,143.28
Answers: 3
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20. Howard must decide if he will purchase discount points for his mortgage. Two discount points
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