Financing
Please give three examples of upfront financing costs associated with residential mortgage. Next, what rule can one apply to determine if a settlement (closing) cost should be included in the calculation of the effective borrowing cost?
Mortgage Borrowing
A homeowner is attempting to decide between a 15 year mortgage loan at 5.5 percent and a 30 year loan at 5.9 percent. What would you advise? What would you advise if the borrower also has a large amount of credit card debt outstanding at a rate of 15 percent?
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FinancingPlease give three examples of upfront financing costs a.docx
1. Financing
Please give three examples of upfront financing costs associated
with residential mortgage. Next, what rule can one apply to
determine if a settlement (closing) cost should be included in
the calculation of the effective borrowing cost?
Mortgage Borrowing
A homeowner is attempting to decide between a 15 year
mortgage loan at 5.5 percent and a 30 year loan at 5.9 percent.
What would you advise? What would you advise if the borrower
also has a large amount of credit card debt outstanding at a rate
of 15 percent?
