Angelina is purchasing a $181,000 house with a 30-year fixed-rate mortgage that has an interest rate of 6.3%. She will make a down payment of $36,200, so her mortgage will be for $144,800. Angelina plans

asked Nov 14, 2024 196k views

Angelina is purchasing a $181,000 house with a 30-year fixed-rate mortgage that has an interest rate of 6.3%. She will make a down payment of $36,200, so her mortgage will be for $144,800. Angelina plans on buying 1 point, and she wants to know her break-even point. Provide Angelina some assistance in determining what it is. (6 points: Part I - 1 point; Part II - 1 point; Part III - 1 point; Part IV - 1 point; Part V - 1 point; Part VI - 1 point)

Part I: If Angelina didn't buy any points, what would her monthly payment be?

Part II: How much will Angelina pay for 1 point?

Part III: What will Angelina's interest rate be after she buys 1 point?

Part IV: What will be Angelina's monthly payment after she buys 1 point?

Part V: How much will Angelina save per month by buying 1 point?

Part VI: What will be Angelina's break-even point after buying 1 point?