Multiple Choice
A homeowner can obtain a $250,000,30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.25 points.
How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?
A) 7.15 years
B) 3.33 years
C) 6.04 years
D) 5.90 years
E) More than 30 years
Correct Answer:
Verified
Correct Answer:
Verified
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Q23: A fixed-rate mortgage originator is adversely affected
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Q29: You want to buy a $250,000 house