Question
A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus 4 points. What is the effective cost of
A borrower takes out a 30-year mortgage loan for $100,000 with an interest rate of 6% plus 4 points. What is the effective cost of borrowing rate on the loan if the loan is repaid after 10 years? (Choose the nearest number)
| a. | 6.6% | |
| b. | 7.4% | |
| c. | 8.1% | |
| d. | 6.2%
|
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
