Ann is looking for a fully amortizing 30 year fixed rate, Finance Basics

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Ann is looking for a fully amortizing 30 year fixed rate

Question: Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $800,000. Mortgage A has a 4.25% interest rate and requires Ann to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront. Assuming Ann makes payments for 30 years, which mortgage has the lowest cost of borrowing?

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Finance Basics: Ann is looking for a fully amortizing 30 year fixed rate

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