A home purchaser need to borrow $500,000 to finance their new home. The buyer believes...
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Finance
A home purchaser need to borrow $500,000 to finance their new home. The buyer believes they will live in the house for approximately 4 years. The buyer is offered two mortgage options. The first loan is at a rate of 3% with the payment of $103 in points. The second loan is at a rate of 2.75% with the payment of $6095 in points. Both loans are 30 year fully amortizing loans with monthly payments. What is the payment on the first loan?
Group of answer choices
$1,828.67
$1244.68
$1388.89
$2108.02
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