After putting 20% down on her $140,000 house, Esmeralda will be borrowing $112,000. The price of 2 points on that loan amount is 2%×$112,000 = $2,240. If Esmeralda applies that amount to the down payment, her loan amount will be $109,760 and her payment will be ...
A = P*(r/n)/(1 -(1 +r/n)^(-nt))
A = 109,760*(.0575/12)/(1 -(1 +.0575/12)^-360)
A = 640.53
Esmeralda's monthly payment will be about $641.
