Question
A 25-year, quarterly amortizing, fixed rate mortgage loan for $300 million has a contract rate of 5%. Closing costs are worth $75000 and 2 discount
A 25-year, quarterly amortizing, fixed rate mortgage loan for $300 million has a contract rate of 5%. Closing costs are worth $75000 and 2 discount points are applied. Total friction cost at origination? APR? How many basis points should be charged as discount points for the APR to equal 5.5%?
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
