The Fritzes are buying a house that sells for $116,000. The bank is requiring a minimum down payment of 10%. To obtain a 25-year mortgage at 7.5% interest, they must pay 2 points at the time of closing. a) Determine the required down payment.
b) Determine the amount of the mortgage on the property with the 10% down payment.
c) Find the cost of 2 points on the mortgage.