Use the Information for the Question(s)below

question 49

Multiple Choice

Use the information for the question(s) below.
You are purchasing a new home and need to borrow $250,000 from a mortgage lender.The mortgage lender quotes you a rate of 6.25% APR for a 30-year fixed rate mortgage.The mortgage lender also tells you that if you are willing to pay 2 points,they can offer you a lower rate of 6.0% APR for a 30-year fixed rate mortgage.One point is equal to 1% of the loan value.So if you take the lower rate and pay the points you will need to borrow an additional $5000 to cover points you are paying the lender.
-Assuming you don't pay the points and borrow from the mortgage lender at 6.25%,then your monthly mortgage payment (with payments made at the end of the month) will be closest to:

• A)$694.
• B)$708.
• C)$1540.
• D)$1600.

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Definitions:

State Contracts

Agreements entered into by government entities for the procurement of goods and services, subject to specific regulatory and legal frameworks.

Construction Company

A business entity involved in the building of structures, infrastructures, and related activities.

Prior Probability

The probability of an event or outcome before new data is taken into account, used in Bayesian analysis.

Event

A happening or occurrence, often significant in the context it is mentioned.