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#2. You are offered a bullet loan of 750,000 at 5.5% for 36 months with 2 points. What is your expected financing cost expressed as

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\#2. You are offered a bullet loan of 750,000 at 5.5% for 36 months with 2 points. What is your expected financing cost expressed as an EAR assuming you make monthly interest only payments and repay the loan at month 36? If you choose to make payments of $5000 per month, and then repay the balance at montl 36 , what will your expected financing costs (expressed as EAR) be? Why are these different? \#2. You are offered a bullet loan of 750,000 at 5.5% for 36 months with 2 points. What is your expected financing cost expressed as an EAR assuming you make monthly interest only payments and repay the loan at month 36? If you choose to make payments of $5000 per month, and then repay the balance at montl 36 , what will your expected financing costs (expressed as EAR) be? Why are these different

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