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Assume you want to borrow $300,000 and have been presented with two options. The first option is a fully amortizing loan with an interest rate
Assume you want to borrow $300,000 and have been presented with two options. The first option is a fully amortizing loan with an interest rate of 3% and $4000 of origination fees and points. The second option is an interest only loan with an interest rate of 4% and $5000 of origination fees and points. Both loans are for 30 years and have monthly payments. What is the payment on the interest only loan?
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$1,000
$1,133.48
$1,333.33
$1,427.49
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