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If you are expected to hold the loan for a short time period, which mortgage should...

If you are expected to hold the loan for a short time period, which mortgage should you choose if you decide to buy a house?

Mortgage without discount points

Mortgage with high discount points

Mortgage with low discount points

Mortgage with negative discount points

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Answer #1

Mortgage with negative discount points

Explanation:

If one needs to run loan for a short time period then it is not beneficial to buy positive points to reduce interest rate, instead buying negative points reduces closing cost.

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