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What will the points cost Wally

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Question - Wally Bee purchased a new home for $450,000 with a $50,000 down payment. He financed the remainder with a 3% mortgage for 30 years. Wally's bank has offered to lower the 3% interest rate on his 30 year loan to 2.75% if Wally will pay 1 3/8 points. What will the points cost Wally?

a. $7000

b. $5500

c. $7875

d. $6187

Reference no: EM133061895

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