You Are Purchasing a New Home and Need to Borrow

question 23

Essay

You are purchasing a new home and need to borrow $325,000 from a mortgage lender.The mortgage lender quotes you a rate of 6.5% APR for a 30-year fixed rate mortgage (with payments made at the end of each month).The mortgage lender also tells you that if you are willing to pay 1 point,they can offer you a lower rate of 6.25% 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 $3250 to cover points you are paying the lender.Assuming that you do not intend to prepay your mortgage (pay off your mortgage early),are you better off paying the 1 point and borrowing at 6.25% APR or just taking out the loan at 6.5% without any points?

Identify common mistakes in writing business plans and how to avoid them.

Recognize the importance of professional assistance and resources available for business plan development.

Understand the process of financial projections and their comparison to industry averages.

Understand the importance and components of a business plan.

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Definitions:

Shared Goals

Objectives or aims pursued collectively by a group or team, fostering collaboration and united effort towards achievement.

Spend More Time Together

Actively allocating increased durations for engagement and interaction with another person or group.

Commitment

The quality of being dedicated to a cause, activity, or relationship, showing willingness to give time and energy to something believed in.

Older Adults

Individuals who are in the later stages of life, typically classified as being 65 years or older.