Which of the following is a disadvantage to purchasing points
a. they lower monthly payments
b. closing costs are increased
c. an immediate tax break is received
d. the interest rate is lowered for the life of the loan
apex answers

B - closing costs are increased

Step-by-step explanation:

All of the other options are advantages to purchasing points. You want lower monthly payments (a), a tax break (c), and lower interest rate (d)

The correct answer is option B.closing costs are increased.

Step-by-step explanation:                        

Mortgage points or discount points refers to the fees paid directly to the lender during closing in exchange for a reduced interest rate.

In this way the buyer buys down the rate, that helps in reducing his monthly mortgage payments.

So, option A, C and D are the advantages of purchasing discount points.

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explanation

the graph has a slope of 1/3 because each time you move up 1, you go to the right 3. so, slope = rise/run = 1/3. we can cross choice a off the list since we want a slope of 3, rather than 1/3.

the first table shown has a slope of -3. this is because the rise is -6 and the run is 2, so slope = rise/run = -6/2 = -3. note how x increases by 2 each time (run) and y drops by 6 each time (rise). choice b can be eliminated.

the second table has a slope of 3. each time x goes up by 1, the y values increase by 3. slope = rise/run = 3/1 = 3. alternatively you can use the slope formula to prove that the slope is 3 here. use any two rows of values to generate the two points. choice c is one of the answers

the third table also has a slope of 3. let's use the slope formula to prove as such. i'm going to use the first two rows of the table. so i'll use the two points (2,1) and (5,10)

m = slope

m = (y2-y1)/(x2-x1)

m = (10-1)/(5-2)

m = 9/3

m = 3 so we get a slope of 3

choice d is the other answer

why can't you?

step-by-step explanation: