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You make $250,000 per year with an annual salary increase of 2%. You are planning to...

You make $250,000 per year with an annual salary increase of 2%. You are planning to buy a house. You have $130,000 in your savings account. The appraisal value for the house is $600,000. After exhaustive shopping for a mortgage, a bank offered you these options: 1. A mortgage for 30 years, 5.00% fixed (compounded monthly), 0-points (no deduction in interest rate), with 20% down payment; or 2. A mortgage for 20 years, 4.50% fixed (compounded monthly), 0-points (no deduction in interest rate), with 20% down payment; or 3. A mortgage for 15 years, 4.00% fixed (compounded monthly), 0-points (no deduction in interest rate), with 20% down payment; or 4. A mortgage for 10 years, 3.50% fixed (compounded monthly), 0-points (no deduction in interest rate), with 20% down payment; or 5. An ARM for 5 years, 3.00% fixed (compounded monthly), 0-points (no deduction in interest rate), with 20% down payment, then 6% afterwards for 25 years.

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