Question
A home mortgage with monthly payments for 30 years is available at 6% interest. The home you are buying cost $120,000, and you have saved
A home mortgage with monthly payments for 30 years is available at 6% interest. The home you are buying cost $120,000, and you have saved $12,000 to meet the requirement for a 10% down payment. The lender charges "points" of 2% of the loan value as a loan origination and processing fee. The is fee is added to the initial balance of the loan.
d)If you transferred in 3 years and pay off the loan, what is your effective annual interest rate?
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Economics Principles and Policy
Authors: William J. Baumol, Alan S. Blinder
12th edition
978-0538453677, 538453672, 978-0538453622, 538453621, 978-0538453653
