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A borrower bought a house for $200000; he can obtain an 80% loan with a 30-year fully amortizing, 7% interest rate and monthly payment. Assuming
A borrower bought a house for $200000; he can obtain an 80% loan with a 30-year fully amortizing, 7% interest rate and monthly payment. Assuming that the marginal tax rate for the borrower is 28%.
What is the effective first 5 months mortgage payment (after tax benefit).
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