Question
A borrower takes out a 30-year FRM for $300,000 with an annual interest rate of 4% plus 3 discount points. All the loan closing fees
A borrower takes out a 30-year FRM for $300,000 with an annual interest rate of 4% plus 3 discount points. All the loan closing fees is $3,000 including fees to third parties. The monthly payment of the loan is $1,432.2459.
Q: If the borrower is planning to prepay at the end of year 10, what's the EBC of this loan?
4.341%
4.548%
4.134%
4.000%
No answer within +/-0.1% of the correct one.
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Real Estate Principles A Value Approach
Authors: David C Ling, Wayne Archer
5th edition
77836367, 978-0077836368
