On March 31, year 1, Mary borrowed $310,000 to buy her principal residence. Mary paid 2...
On March 31, year 1, Mary borrowed $310,000 to buy her principal residence. Mary paid 2 points to reduce her interest rate from 8 percent to 7 percent. The loan is for a 30-year period. What is Mary's year 1 deduction for her points paid?
Homework Answers
Answer:
Mary borrowed $310,000 to buy her principal residence.
Mary paid 2 points to reduce her interest rate from 8 percent to 7 percent.
Mary's year 1 deduction for her points paid = $310,000 * 2% = $6,200
Mary's year 1 deduction for her points paid = $6,200
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