You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 6.4% interest for the rest. a) What is the amount of the down payment? b) What will the amount of the mortgage? c) The bank charges 2 points on the loan. What is the amount charged for points?
You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 6.4% interest for the rest. a) What is the amount of the down payment? b) What will the amount of the mortgage? c) The bank charges 2 points on the loan. What is the amount charged for points?
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter5: Making Automobile And Housing Decisions
Section: Chapter Questions
Problem 8FPE
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You want to buy a $175,000 home. You plan to pay 20% as a down payment, and take out a 30 year loan at 6.4% interest for the rest.
a) What is the amount of the down payment?
b) What will the amount of the mortgage?
c) The bank charges 2 points on the loan. What is the amount charged for points?
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