Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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%?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started