Lucy Loan Shopper wants to secure a $250,000 loan at a 30-year fixed-rate of 3.375%. Par pricing is at 4.125%. In order to reach the rate of 3.375%, Larry Loan Supplier would have to charge Lucy one and a quarter points. How much would Lucy have to pay to secure a rate of 3.375%?
A. 1.25%
B. $1,250
C. 3.125%
D. $3,125
Answer:D
Lucy Loan Shopper wants to secure a $250,000 loan at a 30-year fixed-rate of 3.375%. Par pricing is at 4.125%. In order to reach the rate of 3.375%, Larry Loan Supplier would have to charge Lucy one and a quarter points. How much would Lucy have to pay to secure a rate of 3.375%?
A. 1.25% B. $1,250 C. 3.125% D. $3,125