Assuming ann makes payments for 30 years which mortgage has, Financial Management

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Assuming ann makes payments for 30 years which mortgage has

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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