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You own a multi-family residential building that was purchase 48 months ago. The purchase was financed with a $1,200,000 mortgage with a 30-year amortization period
You own a multi-family residential building that was purchase 48 months ago. The purchase was financed with a $1,200,000 mortgage with a 30-year amortization period and a 10-year term with an interest rate of 6%. You are allowed to prepay the loan, but you will incur a yield maintenance fee based on the current Treasury yield. What is the yield maintenance fee if you were to pay the loan off after 48-months if the appropriate Treasury yield is 2.2%?
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