Use the Information for the Question(s) Below

question 43

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 $5,000 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) $1,570
• B) $1,530
• C) $1,540
• D) $1,500

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Definitions:

Mental Causes

Factors originating in the mind that can lead to certain behaviors or psychological states.

Freudian Concepts

Ideas developed by Sigmund Freud that focus on the unconscious mind, the significance of childhood experiences, and defense mechanisms.

Empirically-Oriented Psychologists

Psychologists who focus on collecting and analyzing data to understand and explain human behavior.

Educational Psychologists

Professionals who study how people learn, including the instructional processes, the psychology of teaching, and the social psychology of schools as organizations.