Question

can someone please help me!!!
jeanne is buying a house for 335,000 she obtains a mortgage in the amount of 186,000 at a 5.5 % fixed rate the bank offers a 5.25% interest rate if jeanne pays 3.75 points what is the cost of points for the mortgage rounded to the nearest dollar?

Answer 1

I may be able to help you, but first what is points?

Answer 2

I have no idea/:

Answer 3

what class is this from?

Answer 4

algebra

Answer 5

ahhh so its not something only an economist would know then :)

Answer 6

well lest try to obtain as much information as we can from the problem.

Answer 7

First off the house cost is 335,000 so she must pay an amount that will give this much money at the present time.

Answer 8

Just to be clear she will have to pay more in dollars, but if those dollars were taken back to the time she bought the house they will be deflated to 335,000

Answer 9

I may need a few minutes to figure out this problem.

Answer 10

points = 1% of mortgage payment.

Answer 11

please see if you can calculate this

Answer 12

this website may be of some interest to you:

http://www.bankrate.com/calculators/mortgages/mortgage-point-adviser.aspx

Answer 13

okay thanks.