Question
You bought a house with price of $1,000,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 5%. Assuming the
You bought a house with price of $1,000,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 5%. Assuming the total transaction cost is $30,000.
What is the effective borrowing cost if the loan will be prepaid at the end of 10 years?
You bought a house with price of $1,000,000. Your LTV (loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 5%. Assuming the total transaction cost is $30,000.
What is the effective borrowing cost if the loan will be prepaid at the end of 10 years?
6.53%
7.53%
5.73%
5.53%
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Overcoming Debt Achieving Financial Freedom
Authors: Cindy Zuniga-Sanchez
1st Edition
1119902320, 978-1119902324
