10. Teachers' Federal Credit Union offers a 3.25%, 10-year mortgage. Moira wants to borrow
$38...
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Mathematics, 10.03.2020 19:08, ale414141
10. Teachers' Federal Credit Union offers a 3.25%, 10-year mortgage. Moira wants to borrow
$380,000 and "purchase" enough negative points to eliminate her $14,000 closing costs. Each
negative point reduces the closing costs by 1% of the principal and increases the APR by 0.135%.
a. How many points will she need?
b. What will her new APR be?
c. What is the breakeven time for Moira's loan?
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Answers: 2
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