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You are offered a $250,000, 30-year, 6% mortgage with a balloon payment of $50,000. The lender will also charge a 2% origination fee. What will
- You are offered a $250,000, 30-year, 6% mortgage with a balloon payment of $50,000. The lender will also charge a 2% origination fee.
- What will the monthly payment be on this loan?
Assuming you hold the loan until maturity, what will the internal rate of return be on this loan? What is the effective annual rate?
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