1. A customer is seeking a $150,000 home mortgage. The bank requires the customer to pay 1¾ points up front. How much of the loan amount will actually be available to the customer if the bank approves the loan?
A. $150,000
B. $152,625
C. $147,375
D. $148,000
E. None of the options is correct
2. Jane Smith has asked for a 30 year mortgage (repayable in monthly installments) to purchase a home in Oklahoma City, Oklahoma. The purchase price of the home is $150,000 of which $125,000 must be borrowed. If the APR on this loan is 8 percent, how much will Jane's total financing charges be?
A. $246,233
B. $205,194
C. $180,194
D. $165,097
E. None of the options is correct