Question
A borrower takes out a 30-year mortgage loan (with monthly payments) for $300,000 with an interest rate of 12% The lender requires 4.0 points to
A borrower takes out a 30-year mortgage loan (with monthly payments) for $300,000 with an interest rate of 12% The lender requires 4.0 points to be paid at the time the loan is originated. What is the effective interest rate on the loan if the loan is repaid after 5 years?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
6th Edition
1473749247, 9781473749245
