Problem 4-13 John wants to buy a property for $105,000 and wants on 80 percent loan for $84,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 6 percent interest; however, a loan origination fee of $3,500 will also be necessary for John to obtain the loan Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loan after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D How much will the lender actually disburse? (Round your final answer to nearest whole doltar amount.) Disbursement Required B > Problem 4-13 John wants to buy a property for $105,000 and wants an 80 percent loan for $84,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 6 percent interest; however, a loan origination fee of $3,500 will also be necessary for John to obtain the loan Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loon after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repold within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? (Round your final answer to 2 decimal places.) Annual percentage rate % Problem 4-13 John wants to buy a property for $105,000 and wants an 80 percent loan for $84,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 6 percent interest; however, a loan origination fee of $3,500 will also be necessary for John to obtain the loan Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loan after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? Complete this question by entering your answers in the tabs below. Required A Required B Required Required 11 John pays off the loan after five years, what is the effective interest rate? (Round your final answer to 2 decimal places.) Effective interest rate Problem 4-13 John wants to buy a property for $105,000 and wants an 80 percent loan for $84,000. A lender indicates that a fully amortizing loan can be obtained for 30 years (360 months) at 6 percent interest; however, a loan origination fee of $3,500 will also be necessary for John to obtain the loan Required: a. How much will the lender actually disburse? b. What is the APR for the borrower, assuming that the mortgage is paid off after 30 years (full term)? c. If John pays off the loan after five years, what is the effective interest rate? d. Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Assume the lender also imposes a prepayment penalty of 2 percent of the outstanding loan balance if the loan is repaid within eight years of closing. If John repays the loan after five years with the prepayment penalty, what is the effective interest rate? (Round your final answer to 2 decimal places.) Effective interest rate %
