Question
Suppose that you are purchasing a house (loan amount = $200,000) and inquire about the terms for a 30-year fixed-rate mortgage. LOAN B: annual interest
Suppose that you are purchasing a house (loan amount = $200,000) and inquire about the terms for a 30-year fixed-rate mortgage.
LOAN B:
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annual interest rate of 3.625% with monthly payments and compounding
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1.25 discount points
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origination fee of 1%
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$18 in third-party closing costs
What is the EBC for the loan if we prepay at the end of the third year?
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Fundamentals Of Contemporary Financial Management
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
2nd Edition
0324406363, 978-0324406368
