How Long Must the Owner Stay in the House to Make

question 24

Multiple Choice

How long must the owner stay in the house to make it worthwhile to pay the points if the payment saving is not invested?

• A) 7.15 years
• B) 3.33 years
• C) 6.04 years
• D) 5.90 years
• E) More than 30 years $5,625 points cost/79.40 payment savings = N = 70.84 months/12 = 5.90 years
• Refer To: 07-22

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Definitions:

Remedy

A means of legal reparation or correction provided to a party who has suffered a loss or injury.

Commercial Reasonableness

The standard by which business actions are judged, based on what a reasonable person would consider fair and appropriate under the circumstances.

Consequential Damages

Refers to the secondary effects or financial losses that occur as a result of a breach of contract, beyond the immediate scope of the agreement.

Substitute Goods

Products or services that can serve as replacements for one another, satisfying the same consumer need.