{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T16:12:39-04:00", "answer_date": "2024-06-06 16:12:39", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2377302", "url": "\/study-help\/questions\/you-are-taking-out-a-fully-amortizing-loan-for-2000000-2377302", "question_creation_date_js": "2024-06-06T16:12:39-04:00", "question_creation_date": "Jun 06, 2024 04:12 PM", "meta_title": "[Solved] You are taking out a fully amortizing loa | SolutionInn", "meta_description": "Answer of - You are taking out a fully amortizing loan for $2,000,000 over 30 years.You can choose between a loan at 7% with 3 poi | SolutionInn", "meta_keywords": "taking,fully,amortizing,loan,$2,000,000,30,years,choose,7%,3,points,7.5%", "question_title_h1": "You are taking out a fully amortizing loan for $2,000,000 over 30 years.You can choose between a loan at 7% with 3 points and a", "question_title": "You are taking out a fully amortizing loan for $2,000,000 over 30", "question_title_for_js_snippet": "You are taking out a fully amortizing loan for $2,000,000 over 30 years You can choose between a loan at 7 with 3 points and a loan at 7 5 with no points If you plan to sell the property after 5 years, which loan will give you the lower effective borrowing cost Does your answer change if the loan without points has a prepayment penalty of 2 of the outstanding balance if repaid within the first 7 years ", "question_description": "

You are taking out a fully amortizing loan for $2,000,000 over 30 years.You can choose between a loan at 7% with 3 points and a loan at 7.5% with no points.<\/p>

  1. If you plan to sell the property after 5 years, which loan will give you the lower effective borrowing cost?<\/li>
  2. Does your answer change if the loan without points has a prepayment penalty of 2% of the outstanding balance if repaid within the first 7 years?<\/li> <\/ol>

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