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Assume the bank offering a 30-year fixed rate mortgage loan, payable monthly at 5.25% annual interest rate does not charge any points. However after 5
Assume the bank offering a 30-year fixed rate mortgage loan, payable monthly at 5.25% annual interest rate does not charge any points. However after 5 years, you must move, sell your house and pay off the mortgage loan What is the effective interest rate on your mortgage loan?
Group of answer choices
5.625%
5.375%
5.25%
5.50%
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