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please answer soon! 10 points Save at Consider a 15 year loan with an annual interest rate of 4.5 percent and monthly payments of $2,141.98.
please answer soon!
10 points Save at Consider a 15 year loan with an annual interest rate of 4.5 percent and monthly payments of $2,141.98. The discount points charged by the lender at origination are 2 percent and the cost of borrower title insurance and mortgage insurance are, respectively, 0.3 percent and 2.6 percent of the loan amount. Additional fees to third parties (not the lender) will equal $3,700. SHOW ALL OF YOUR WORK TO RECEIVE CREDIT a) What is the loan amount? (round to the nearest dollar). b) What is the lender's yield/IRR if the loan goes to maturity? What is the effective borrowing cost if the loan goes to maturity? d) What is the lender's yield/IRR if the loan pays off after 8 years? e) What is the effective borrowing cost if the loan pays off after 8 years? 10 points Save at Consider a 15 year loan with an annual interest rate of 4.5 percent and monthly payments of $2,141.98. The discount points charged by the lender at origination are 2 percent and the cost of borrower title insurance and mortgage insurance are, respectively, 0.3 percent and 2.6 percent of the loan amount. Additional fees to third parties (not the lender) will equal $3,700. SHOW ALL OF YOUR WORK TO RECEIVE CREDIT a) What is the loan amount? (round to the nearest dollar). b) What is the lender's yield/IRR if the loan goes to maturity? What is the effective borrowing cost if the loan goes to maturity? d) What is the lender's yield/IRR if the loan pays off after 8 years? e) What is the effective borrowing cost if the loan pays off after 8 years Step by Step Solution
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