Financial economics
Value of the house 500,000. You are using a 30-year mortgage. Also, you are putting down 20%. (show your work)
You have two options:
a. Mortgage rate of 4.5% with no points.
b. Mortgage rate of 4.35% and 1.5 points.
Which option should you choose? (calculate the present value of future savings)
Which of the below option should you choose? (calculate the present value of future savings)
