Use the payment formula found on the first page at the openi…
Use the payment formula found on the first page at the opening of this quiz, determine the regular payment amount, rounded to the nearest dollar. Consider the following pair of mortgage loan options for a $130,000 mortgage. Which mortgage has the larger TOTAL cost (closing costs + the amount paid for points + total cost of interest)? By how much? Mortgage A is a 30-year fixed rate at 6.25%, with closing costs of $1,200 and 1 point. Mortgage B is a 30-year fixed rate at 4.5%, with closing costs of $1,200 and 4 points.