Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Suppose you took out an 80% LTV loan exactly 12 years ago to purchase a $429,000 home. The loan was for 30 years with monthly
Suppose you took out an 80% LTV loan exactly 12 years ago to purchase a $429,000 home. The loan was for 30 years with monthly payments. The loan has a fixed contract rate of 4.5%, but current market rates have risen to 6.75%. If the lender offers to forgive $10,000 of your outstanding balance, what would be the rate of return to you if you take their offer?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started