Question
A 25-year, quarterly amortizing, fixed rate hotel mortgage loan for $. 300 mi has a contract rate of 5%. Closing costs worth $. 75000 and
A 25-year, quarterly amortizing, fixed rate hotel mortgage loan for $. 300 mi has a contract rate of 5%. Closing costs worth $. 75000 and 2 discount points are applied.
- What is the periodic payment on the loan? _____
- What is the total friction cost at origination?_____
- What is the APR? _____
- In the above problem, how many basis points should be charged as discount points for the APR to equal 5.5%? Need to show the calculations.
5. andDiscount points_____ ?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
