Correct 4 Medal ^.^
They have calculated all of the associated fees as well as any other expenses. They have $6,000 available to purchase the points, and plan to stay in the house for 14years.
Loan A Loan B
$278,100 $278,100
20-year fixed 20-year fixed
6.94% 6.62%
0 discount points 3 discount points
M = $2,146.10 M=$2,093.13
-----------------
Loan A = 515064.0
Loan B = 780451.2

515064.0 -780451.2 = 26587.2

Question

Correct 4 Medal ^.^ 
They have calculated all of the associated fees as well as any other expenses. They have $6,000 available to purchase the points, and plan to stay in the house for 14years. 
Loan A                           Loan B
$278,100                   $278,100
20-year fixed             20-year fixed
6.94%                            6.62%
0 discount points        3 discount points 
M = $2,146.10          M=$2,093.13
-----------------
Loan A = 515064.0
Loan B = 780451.2

515064.0 -780451.2 = 26587.2

anonymous · Answer

They should purchase the discount points because they will be in the house long enough to justify the purchase.

 They should not purchase the discount points because they will not be in the house long enough to justify the purchase.

 They should not purchase the discount points because they do not have enough available cash.

 They should purchase the discount points because available cash should always be used to buy points.

anonymous · Answer

My answer :
They should purchase the discount points because they will be in the house long enough to justify the purchase.

maxdrizner · Answer

loan A would be cheapest

anonymous · Answer

How I did this :   ***12 * 20 =240**
Loan A = 2146.10 * 240 + 0 = 515064.0
Loan B = 2093.13 * 240 + 278,100 = 780451.2

maxdrizner · Answer

what are you trying to find... how cheap it is or what the best deal is

anonymous · Answer

These are my choices :

They should purchase the discount points because they will be in the house long enough to justify the purchase.

 They should not purchase the discount points because they will not be in the house long enough to justify the purchase.

 They should not purchase the discount points because they do not have enough available cash.

 They should purchase the discount points because available cash should always be used to buy points.

anonymous · Answer

My answer :
They should purchase the discount points because they will be in the house long enough to justify the purchase.

maxdrizner · Answer

i think i found someone would would be able to help you but let me think cause i might be able to help

maxdrizner · Answer

that should be correct

anonymous · Answer

Thank you for the help :D !

maxdrizner · Answer

because if you do not have enough and you take out a loan, you will be in major dept and just everything will suck.
never use credit cards either, only debit lol, these are my life lessons to you my friend

maxdrizner · Answer

and no problem

maxdrizner · Answer

and over time your property value will decrease unless you keep your house like spit shined lol

anonymous · Answer

What If I have 30 stray cats living with me :(

maxdrizner · Answer

well lol you will have to keep steaming the crud out of dem rugs lol. i rebuilt a playhouse and turned it into an office and there were piles of mouse crap
i had to steam it

anonymous · Answer

I REBUILD  A TREE HOUSE OUT OF TOOTH PICKS !!! until it stormed

maxdrizner · Answer

haha thats insane dude

maxdrizner · Answer

its pretty difficult to rebuild things when all you got is lumber laying around the yard and you are limited and all you have is a little hack saw and a hammer