question archive 1)Duke was approved for a 30 year conventional loan for $250,000 at 3
1)Duke was approved for a 30 year conventional loan for $250,000 at 3
Subject:BusinessPrice: Bought3
1)Duke was approved for a 30 year conventional loan for $250,000
at 3.65% fixed rate. He was also approved for a 15 year conventional loan for $250,000 at 3.45% fixed rate. He has $20,000 to put as a down payment. He has to pay insurance of $1400 a year and property tax of $2500 a year. Use time value of money to figure out the best options for Duke. (Be sure to show your work if you are able)
a) To avoid PMI (at least 20% down) what amount would Duke have to put down if he wants to take out the full amount of the loan ($250,000)?
