Question
There is a $180,000 loan at 9% for 20 years and a second mortgage for $40,000 at 13% for 20 years. All loans require monthly
There is a $180,000 loan at 9% for 20 years and a second mortgage for $40,000 at 13% for 20 years. All loans require monthly payments and are interest-only. 5 points are charged for the second mortgage. Assume the borrower will own the property for 30 years. Compute the effective cost (%) of the combined loans.
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The New Managed Account Solutions Handbook
Authors: Stephen D. Gresham, Arlen S. Oransky
1st Edition
0470222786, 978-0470222782
