A professional couple wishes to purchase a new home costing $750,000, make a 20 percent down payment, and finance the remaining $600,000. The rate quoted for a conventional 30-year loan is 6 percent interest with 2.725 percent in points and $ 16,159 in other closing costs.
Use the additive approach to determine the APR (see Example 3.6 ).
APR(sub) =
APR(add) =
APR(ADD W/PT on ALL) =