Answered step by step
Verified Expert Solution
Question
1 Approved Answer
All else equal, assuming the borrower paid any amount of points, which is true? The lenders yield on that loan will be reduced if the
- All else equal, assuming the borrower paid any amount of points, which is true?
- The lenders yield on that loan will be reduced if the loan is paid off early
- Paying points on a mortgage makes the loan less costly to the borrower
- Loan points have no effect on yield, just on the contract interest rate
- Paying off the loan early will increase the effective annual yield of the loan
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started