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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
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%
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
978-0538482387
