Narrative 14-2
for Problems in This Section, Use Table 14-1 $10 \frac { 1 } { 2 } \%$

question 86

Short Answer

Narrative 14-2
For problems in this section, use Table 14-1 from your text to find monthly mortgage payments.
-Refer to Narrative in your text 14-2. Stevie Ray is looking for a 20-year mortgage of $90,000. The Alternative Savings Bank is offering a $10 \frac { 1 } { 2 } \%$ mortgage with 2 discount points, and the Green Bank is offering a 10% mortgage with $3 \frac { 1 } { 2 }$ closing points.
A)How much more total interest will be paid on the mortgage from Alternative Savings?
B)Taking into account the discount points, which bank is offering a better deal, and by how much?

• A)How much more total interest will be paid on the mortgage from Alternative Savings?
• B)Taking into account the discount points, which bank is offering a better deal, and by how much?

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