Question
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $800,000. Mortgage A has a 4.25% interest rate and
Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $800,000.
Mortgage A has a 4.25% interest rate and requires Ann to pay 1.5 points upfront.
Mortgage B has a 6% interest rate and requires Ann to pay zero fees upfront.
Assuming Ann makes payments for 30 years, what is Anns annualized IRR from mortgage A?
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Principles Of Managerial Finance
Authors: Chad Zutter, Scott Smart
16th Global Edition
1292400641, 978-1292400648
