Trystan and Kendall have decided to buy a new home that costs $300,000.They want to make a 20% down payment and finance the rest.Their bank has offered an opportunity to buy down the quoted interest rate of 4.75% by 0.125% per point purchased.Each point will cost 1% of the amount borrowed.Trystan and Kendall were hoping the interest rate was no more than 4.5% What will it cost to buy down the quoted interest rate to 4.5%?

Question

Quizplus · Accepted Answer

The Answer of Trystan and Kendall have decided to buy a new home that costs $300,000.They want to make a 20% down payment and finance the rest.Their bank has offered an opportunity to buy down the quoted interest rate of 4.75% by 0.125% per point purchased.Each point will cost 1% of the amount borrowed.Trystan and Kendall were hoping the interest rate was no more than 4.5% What will it cost to buy down the quoted interest rate to 4.5%?

Trystan and Kendall Have Decided to Buy a New Home