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There are a number of issues that a person must think about when purchasing a home. One such issue is the difference between the interest rate on which the loan payment is based and the APR. For instance, a bank may offer a loan at an annual interest rate of 6.5%, but then go on to say that the APR is 7.1%. The discrepancy is a result of the Truth in Lending Act. This act requires that the APR be based on all loan fees. This includes points and other fees associated with the purchase. To calculate the APR, a computer or financial calculator is necessary. Suppose that you decide to purchase a home and you secure a 30-year, $285,000 loan at an annual interest rate of 6.5%. Another issue to research when purchasing a home is that of points and mortgage interest rates. Usually paying higher points results in a lower mortgage interest rate. The question for the homebuyer is: Should I pay higher points for a lower mortgage interest rate, or pay lower points for a higher mortgage interest rate? The answer to that question depends on many factors, one of which is the amount of time the homeowner plans on staying in the home. Consider two typical situations for a 30-year,$100,000 mortgage. Option 1 offers an annual mortgage interest rate of 7.25% and a loan origination fee of 1.5 points. Option 2 offers an annual interest rate of 7% and a loan origination fee of 2 points. What is the total amount paid, including points, after 2 years for each option?
The products of photosynthesis are glucose and oxygen. In this case, if plants get plenty of sunlight exposure, then it would surely increase the rate of photosynthesis. This means that it is likely that more oxygen is going to be produced during a sunny day.
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