Calculate interest rate , Financial Accounting

As a borrower, which of the following two 30 year, monthly payment loans would you choose (and why) if you had a 10 year expected payment horizon: 5% interest rate with 3.5 points, versus 5.875% interest with one point?  Suppose your prepayment horizon was 5 years?

 

Posted Date: 3/7/2013 5:48:27 AM | Location : United States







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