How many points are being paid up front on mortgage loan

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Reference no: EM131505851

Question: A mortgage company advertises that their 6% APR is an effective annual rate of 6.58% with monthly payments and compounding. Let's assume this is made possible by paying points on amortgage (one pointis 1% of the loan amount). How many points are being paid up front on a $100,000 mortgage loan over 15 years to arrive at an effective interest rate of 6.58%?

Reference no: EM131505851

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