Please help due today really important!!!show / explain how to get it
The cost of a mortgage (loan) for buying a house used to be very simple: a fixed cost for
paperwork, a cost of a survey depending on the house value, and then a specified interest rate
for an agreed number of years. There is now a bewildering range of mortgages. The variety is
supposedly to cater for different markets, but makes it hard to compare the offerings of different
providers.
One type provided by many companies is a discounted rate, where there is a fixed 'arrangement'
fee, and then an interest rate which remains lower than the company's regular rate for a given
time, but with an early-repayment charge if the loan is repaid before the end of the discount
period. At the end of the discount period the rate switches to the regular rate, and there is then no
repayment charge.
The Best Bolandian Bank's one-year regular (simple) rate is 3.0%, but it offers discounted rates:
Arrangement Fee
$1000
$2000
Discounted (simple)
rate
2.6%
2.5%
Early-repayment
charge
1.00%
1.50%
If not repaying early, what is the minimum loan for which the total cost to have the discounted
rate with the higher fee is less than either the other discount or the regular rate?