Two options-down payment and monthly payments

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Reference no: EM131047879

You plan to purchase a home for S500,000 and finance it with a 30 year mortgage at 6% interest rate with zero points. You'll make 20% down payment, and monthly payments. Your bank offers you the following two options: Option 1: mortgage rate of 5% a 1 point. Option 2: mortgage rate of 4.5% and 2 points. Which option you should choose, if you plan to keep the house for 7 years?

Reference no: EM131047879

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Two options-down payment and monthly payments : You plan to purchase a home for S500,000 and finance it with a 30 year mortgage at 6% interest rate with zero points. You'll make 20% down payment, and monthly payments. Your bank offers you the following two options: Option 1: mortgage rate of 5% a ..

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