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What is the cost of points for the mortgage

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Reference no: EM132463323

Question 1: Macy has a 20 year adjustable rate mortgage with a fixed rate for the first 7 years. In the 8th year, the interest rate rises to 6.2%. The remaining balance at the end of the 7th years is $398,381.20. What is the monthly payment in the 8th year?

  1. $3,725.90
  2. $2,553.73
  3. $3,928.96
  4. $2,900.28

Question 2: Jessica is buying a house for $445,000. She obtains a mortgage in the amount of $326,000 at a 3.5% fixed rate. The bank offers a 3.25% interest rate if Jessica pays 2.75 points. What is the cost of points for this mortgage rounded to the nearest dollar?

  1. $12,238
  2. $8,965
  3. $11,410
  4. $10,595

Question 3: A mortgage is in the amount of $800,000. The origination fee is 0.4%, the intangible tax is 0.2%, and there are 3.5 discount points. Which of the following is the total cost of the origination fee, the intangible tax, and the discount points?

  1. $28,000
  2. $32,800
  3. $29,600
  4. $4,800

Reference no: EM132463323

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