Question

For each "point" you pay on a mortgage, you get a one-quarter percent reduction in the interest rate. You want to get a .375% reduction on your interest rate. How many points do you have to pay?

Answer 1

Since you already have .25 % and you need to reach .375%.
.375/.25=1.428
round it and the closest answer is 1.5

Answer 2

The correct answer is 1.5 points.

For each "point" you pay on a mortgage, you get a one-quarter percent reduction in the interest rate. You want to get a .375% reduction on your interest rate. The points we have to pay is 1.5 points.

 

Further Explanation:

Mortgage:

The mortgage is used to raise funds by the real property owners. It is a borrowed amount or a loan taken from the bank or any from any lender. The amount is repaid with the interest to the bank or the lender.  

Step 1:

Compute the number of points to be paid:

Number of points = Reduction on interest ÷ one-quarter percent reduction

                              = 0.375 ÷ 0.25

                              = 1.428 or around 1.5 points

Therefore, 1.5 points we have to pay.

Learn More:

1. Credit card

brainly.com/question/1218973

2. Interest value

brainly.com/question/5993991

3. Credit card  

brainly.com/question/8750254

Answer Details:

Grade: High School

Chapter: Mortgage

Subject: Business Studies

Keywords:

For each "point" you pay on a mortgage, you get a one-quarter percent reduction in the interest rate. You want to get a .375% reduction on your interest rate. How many points do you have to pay, 1.5 points, loan, borrowed amount, amount repaid with interest, loan taken from banks or lenders, mortgage loans, raise funds, real property owners.