Unformatted text preview: according to the above table. (b) Determine the new monthly payment associated with a refinance at the market rate and at the "buy down" of your rate to 3.375% (c) Buying down has a cost. Determine that cost to buy down. Determine how many months you have to remain in the house in order to break even on the monthly savings the buy down rate gives you making monthly payments? (d) Calculate your net gain (loss) by buying down the rate to 3.375% if you remain in the house the full 10 years? (e) What do "buyers" have to consider before accepting such a buy down option?...
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- Winter '10
- Interest, market mortgage rate, Table Provident Funding, Mortgage Points Problem