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What is the amount of the mortage on the property

The Smiths are buying a home that sells for $175,000. The lending institution is requiring a minimum down payment of 20%. To obtain a 20 yr mortgage at 8%, they must pay two (2) points at the time of closing.

1) What is the required down payment?

2) With 20% down payment, what is the amount of the mortage on the property?

3) What is the cost of the points?

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the amount of the mortage on the property

Reference No:- TGS01451938

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Q : Appropriate risk-adjusted discount rate

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the amount of the mortage on the property

Reference No:- TGS01451938

Recent Questions Asked Finance Basics

Q : Present value of the business

Q : Appropriate risk-adjusted discount rate

Q : Expected return on a portfolio-amount invested in stock

Q : Combinations of discount rates

Q : What is the amount of the mortage on the property

Q : Develop a forecast model for sales through operating income

Q : Sole proprietorship-partnership and corporation

Q : Agreement requiring the repayment of the loan

Q : Auctions and retirememnt planning

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