"The highest education is that which does not merely
give us information but makes our life in harmony
with all existence."
- Rabindranath Tagore
A quick question to test your knowledge of how rates work in real life:
"Your first time buyers are purchasing a home and will be obtaining a $200,000 mortgage at 4% for 30 years. If interest rates increase from 4 to 5 percent over the next year, how much more would your first-time buyers pay in additional interest over the life of a 30-year loan?"
About $11,000, or maybe around $20K?
One interest point added to that loan's rate adds $41,884 to the cost of paying it off over term.
Makes me feel like opening my own bank, eh?
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