Question
Suppose that you have borrowed $175,000 in the form of a 20-year fixed rate mortgage with the following terms: Interest Rate: 5% per year with
Suppose that you have borrowed $175,000 in the form of a 20-year fixed rate mortgage with the following terms:
Interest Rate: 5% per year with monthly payments and compounding. Origination Fee: 0.5%
Points: 1.75
Third-Party Closing Costs: $2,500
If you pay off this loan at the end of the 5th year, what will be the lenders yield?
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Case Studies In Finance
Authors: Robert Bruner, Kenneth Eades, Michael Schill
6th Edition
0073382450, 978-0073382456
