Mortgage Payment and Points Analysis

The video tutorial explores two mortgage options: a 30-year loan at 4.6% interest without points and a 30-year loan at 4.3% interest with two points. It provides detailed calculations for monthly payments and total payments over 30 years for both options. The tutorial advises that paying points is beneficial if you plan to stay in the house for 20-30 years, as it results in lower total payments. However, if you plan to move within 5-10 years, the no points option is better. The video emphasizes understanding financial decisions and suggests consulting with banks for break-even analysis.

What is the total amount to be mortgaged in the example?

• $200,000

• $350,000

• $250,000

• $300,000

Which of the following is NOT considered in the mortgage example?

• Interest rate

• Closing costs

• Loan term

• Down payment

What is the interest rate for the 30-year loan without points?

• 5.0%

• 4.6%

• 4.3%

• 5.3%

How many years is the loan term for both mortgage options?

• 15 years

• 20 years

• 25 years

• 30 years

What is the monthly payment for the first option without points?

• $1,600.00

• $1,500.00

• $1,300.00

• $1,281.61

What is the total payment over 30 years for the first option?

• $550,000

• $500,000

• $461,009.60

• $400,000

How much are the points in the second option?

• $2,500

• $5,000

• $7,500

• $10,000

What is the new mortgage amount when points are rolled into the loan?

• $250,000

• $255,000

• $260,000

• $265,000

What is the monthly payment for the second option with points?

• $1,261.92

• $1,300.00

• $1,500.00

• $1,600.00

What is the total payment over 30 years for the second option?

• $460,000.00

• $480,000.00

• $470,000.00

• $454,291.20