A couple is purchasing a home for $300,000 and are shopping for a loan. They have...

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A couple is purchasing a home for $300,000 and are shopping fora loan. They have a total of $27,000 to put down, including thecost of $1,000 and any loan fee that might be changed. Bank Aoffers a 9% APR amortized over 30 years with 360 equal monthlypayments. There is no loan fee. Bank B offers a 8.5% APR amortizedover 30 years with 360 equal monthly payments. There is a loan 3%loan fee (a one time up front charge of 3% of the loan). Which loanis better?

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A couple is purchasing a home for $300,000 and are shopping fora loan. They have a total of $27,000 to put down, including thecost of $1,000 and any loan fee that might be changed. Bank Aoffers a 9% APR amortized over 30 years with 360 equal monthlypayments. There is no loan fee. Bank B offers a 8.5% APR amortizedover 30 years with 360 equal monthly payments. There is a loan 3%loan fee (a one time up front charge of 3% of the loan). Which loanis better?

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