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SHOW EXCEL FORMULAS 6. How much must a seller pay to a buyer's lender to buydown the interest rate from 7% to 5.5% for 5

image text in transcribedSHOW EXCEL FORMULAS

6. How much must a seller pay to a buyer's lender to "buydown" the interest rate from 7% to 5.5% for 5 years on a 30- year, monthly payment FRM loan for $530,000? Buydown Period (years) 5 Buydown amount with PV function 7% Loan Loan Amount Annual Interest Rate Maturity (in years) Periods per year Monthly Payment $530,000.00 7.00% 30 12 $3,526.10 5.5% Loan Loan Amount Annual Interest Rate Maturity (in years) Periods per year Monthly Payment $530,000.00 5.50% 30 12 $3,009.28

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