Question
Suppose you take a 30-year fixed-rate mortgage for $250,000 at 5.25%, monthly payments with a two discount point rebate (negative discount points) to the borrower.
Suppose you take a 30-year fixed-rate mortgage for $250,000 at 5.25%, monthly payments with a two discount point rebate (negative discount points) to the borrower. Assume that you have no other financing fees.
A. (1 pt) What is the APR of the loan?
B. (1 pt) What is the effective cost with a five-year holding period?
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Financial Management In The Public Sector Tools Applications And Cases
Authors: Xiaohu Wang
1st Edition
0765616785, 9780765616784
