document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=260613>Question 260613</A>: <I><SPAN STYLE=\"word-break: break-all;\"> You need a loan of $170,000 to buy a home. Calculate your monthly payments and total closing costs for each choice below. <BR>\n" );
document.write( "choice 1: 20-year fixed rate at 9% with closing costs of $1200 and no points.<BR>\n" );
document.write( "choice 2: 20-year fixed rate of 8.25% with closing costs of $1200 and 3 points. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #192098 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=192098\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> points are usually 1% of the cost of the mortgage.\r<BR>\n" );
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document.write( "if the mortgage is $170,000, then 1 point = .01 * $170,000 = $1,700.00\r<BR>\n" );
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document.write( "3 points is equal to $5,100\r<BR>\n" );
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document.write( "if you take a 20 year mortgage at 9% a month with 0 points, then your total costs are as follows:\r<BR>\n" );
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document.write( "up front closing:   $1,200\r<BR>\n" );
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document.write( "monthly payments:  $1,529.53\r<BR>\n" );
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document.write( "if you take a 20 year mortgage at 8.25% a month with 3 points, then your total costs are as follows:\r<BR>\n" );
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document.write( "up front closing:     $1,200<BR>\n" );
document.write( "up front points:      $5,100\r<BR>\n" );
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document.write( "total closing:       $6,300\r<BR>\n" );
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document.write( "monthly payments:    $1,448.51\r<BR>\n" );
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document.write( "the difference in your monthly payments are:   $81.02\r<BR>\n" );
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document.write( "the additional up front investment of $5,100 is earning you $81.02 per month for a period of 20 years.\r<BR>\n" );
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document.write( "you will recoup this $5,100 investment without interest in 62.94742039 months.\r<BR>\n" );
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document.write( " </SPAN>\n" );
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