You Are Purchasing a New Home and Need to Borrow

question 61

Multiple Choice

You are purchasing a new home and need to borrow $380,000 from a mortgage lender. The mortgage lender quotes you a rate of 5.75% APR for a 30-year fixed rate mortgage. The mortgage lender also tells you that if you are willing to pay two points, they can offer you a lower rate of 5.45% 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 $7600 to cover points you are paying the lender. Assuming you do not pay the points and borrow from the mortgage lender at 5.75%, then your monthly mortgage payment (with payments made at the end of the month) will be closest to ________.

• A) $2439
• B) $2661
• C) $2218
• D) $3105

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Definitions:

Disk Management

A Windows utility that provides users with the capability to manage the partitions and drives connected to their system.

SOW

Statement of Work; a document detailing the project's goals, deliverables, timeline, and specific work to be done.

Purpose Of The Change

In change management, the part of the planning process that documents why a change is needed.

Backout Plan

A strategy or plan that is executed to revert changes made during a failed project or system update to its original state.