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:

Martin Van Buren

Martin Van Buren was the eighth President of the United States (1837-1841), known for his role in founding the Democratic Party and his advocacy for the removal of Native Americans from their ancestral lands.

Economic Inequality

A measure of the unequal distribution of wealth, income, and opportunity among individuals or groups within a society.

Government Intervention

The involvement of a government in the market, economy, social issues, or personal affairs, through regulations, policies, or direct actions to influence outcomes.

Abolish Slavery

The act of legally ending the practice of slavery, making it illegal to own, buy, or sell human beings as property.