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Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000. Mortgage A has a 7.05% interest rate and requires
Ann is looking for a fully amortizing 30-year Fixed Rate Mortgage with monthly payments for $1,500,000.
Mortgage A has a 7.05% interest rate and requires Ann to pay 1.5 points upfront.
Mortgage B has a 9% interest rate and requires Ann to pay zero fees upfront.
Assuming Ann makes payments for 2 years before she sells the house and pays the bank the balance, what is Anns annualized IRR from mortgage A?
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Applied Financial Macroeconomics And Investment Strategy
Authors: Robert T McGee
1st Edition
1137428394, 978-1137428394
