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thank you 15. A lender is considering what terms to allow on a loan.Current market terms are 9 percent interest for 25 years for a
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15. A lender is considering what terms to allow on a loan.Current market terms are 9 percent interest for 25 years for a fully amortizing oan. The borrower, Rich, has requested a loan of $100,000. The leader believes that extra credit analysis and carefull loan control will have to be exercised because Rich has never borrowed such a large sum before. In addition, the lender expects that market rates will move upward very soom, perhaps even befoee the loan is closed. To be on the safe side, the lender decides to extend to Rich a CPM loan commitment for S95,000 a9 percent interest foe 25 years; however, the lender wants to charge a loan origination fee to make the mortgage loan yield 10 percent What origination fee should the leader charge? What fee should be charged if it is expected that the loan will be repaid after 10 yearsStep by Step Solution
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