The bells obtain a 20-year, $90,000 conventional mortgage at a 8.5% rate on a house selling for $130,000. their monthly mortgage
payment, including principal and interest, is $781.20. They also pay 3 points at closing.
a) determine the total amount the bells will pay for their house.
b) how much of the cost will be interest (including the 3 points)?
c) how much of the first payment on the mortgage is applied to the principal?
1 answer:
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