Using the same $2700 for closing costs mentioned in
part a
, determine the total you
could expect to pay at closing for this loan option.
List the costs (2 pts.).
$2700+1170=$3870.34 CLOSING COST
3
080514

Loan 4 scenario:
Suppose your bank were offering a lower interest rate for a 15-year fixed loan
if you pay 4 points (4% of the loan amount) as part of your closing costs (not rolled into your
mortgage amount).
You are still required to put 10% down for a 15-year fixed loan but your
interest rate is now 1.0% lower. Calculate the mortgage payment for this scenario.
d.
Loan 4:
(the 15-year fixed mortgage with points)