10 Jan

A builder is offering buyers mortgage rates of 10% with 15 year term

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Question: 25. A builder is offering buyers mortgage rates of…

A builder is offering buyers mortgage rates of 10% with 15 year term. Current rates are 10.75%. The Bank will provide the loans, if the builder accepts to pays an equivalent amount up front to buy down the interest rate. If a house is sold for $300,000 with a 90% loan, how much would the builder have to pay to buy down the loan?

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