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House Price $2,500,000.00 Down Payment $50,000.00 Mortgage $2,450,000.00 Mortgage Closing Costs $5,000.00 Mortgage Buydown Points 1.75% Total Mortgage Costs $47,875.00 Annual Contract Rate 4.00% Term
| House Price | $2,500,000.00 |
| Down Payment | $50,000.00 |
| Mortgage | $2,450,000.00 |
| Mortgage Closing Costs | $5,000.00 |
| Mortgage Buydown Points | 1.75% |
| Total Mortgage Costs | $47,875.00 |
| Annual Contract Rate | 4.00% |
| Term (years) | 30 |
| Payments per year | 12 |
| Total Number of Payments | 360 |
| Balloon | $0.00 |
Assume that Annualized IRR = 4.15%, Is it higher or lower than the mortgage contract rate? and Why?
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Authors: S. Platt
1st Edition
113733729X,1137337303
