You took out a loan 10 years ago that had the following terms. Amount $1,200,000, rate 5.5%
Fantastic news! We've Found the answer you've been seeking!
Question:
You took out a loan 10 years ago that had the following terms. Amount $1,200,000, rate 5.5% and 30 year amortization. You are looking to refinance the existing balance. What is your rate of return on cost if your refinance fees equal 5% of the refinance amount, the new rate is 3.5% with 240 months and you anticipate that you will only be in the house for the next five years.
What is your effective cost of borrowing?
Expert Answer:
Answer rating: 100% (QA)
The original amount of the loan was 120000000 and was granted to the borrower 10 years ... View the full answer
Posted Date:
Students also viewed these management leadership questions
-
What is your appraisal of Panera Bread's financial performance based on the data contained in case Exhibit 1? How well is the company doing financially? Use the financial ratios in Table 4.1 of...
-
What is your appraisal of Chipotle Mexican Grill's financial performance based on the data contained in case Exhibit 1? How well is the company doing financially? Use the financial ratios in Table...
-
What is your opinion of pharmaceutical advertising?
-
Common structural steel can be represented on drawings using a letter, immediately followed by a number, then another number (for example, S14x30). The two numbers for a steel member W16x60 designate...
-
A shoe store developed the following estimated regression equation relating sales to inventory investment and advertising expenditures. y = 25 + 10x1 + 8x2 Where x1 = inventory investment ($1,000s)...
-
Repeat Problem 8.10 after interchanging r1 and r3.
-
For Example 16-1, estimate an average \(\mathrm{H}_{\mathrm{OG}}\) in the stripping section. Then calculate \(\mathrm{n}_{\mathrm{OG}}\) and \(\mathrm{h}_{\mathrm{E}}=\mathrm{H}_{\mathrm{OG}, \text {...
-
Paris Jewelry Company reported the following summarized balance sheet at December 31, 2012: During 2013, Paris completed these transactions that affected stockholders equity: Requirements 1....
-
Suppose that based on a survey conducted in BC and Ontario, 61% in BC and 54% in Ontario support the idea of carbon pricing. Suppose also that the sample sizes in BC and Ontario are 550 and 407,...
-
Newlyweds Jamie Lee and Ross have had several milestones in the past year. They are newly married, recently purchased their first home, and now have twins on the way! Jamie Lee and Ross have to...
-
Ramakrishnan, Inc., reported 2021 net income of $20 million and depreciation of $2,700,000. The top part of Ramakrishnan, Inc.'s, 2021 and 2020 balance sheets is reproduced below (in millions of...
-
Why do entrepreneurs typically look to family members and friends for funding?
-
Interview an entrepreneur to learn how he or she measures success. Is career success defined only in financial terms, or are other yardsticks used to measure success?
-
Explain how profits and taxes are treated in a pass-through entity. What is the most effective way to plan for taxes related to owning a pass-through entity?
-
Write a plan to build relationships with venture capitalists for a new business venture you are developing
-
Explain why liquidation value is typically not the method that should be used for evaluation of the exit/harvesting strategy for a company.
-
Tam Tam Sdn Bhd has established their business for almost 35 years. In fact, the company is one of the key players in manufacturing industry. However, it is not a technology-driven company. The...
-
Fill in each blank so that the resulting statement is true. 83 + 103 = ______ .
-
Figure 7.13 displays two groups of data points, given in Table 7.8. The convex hulls have also been plotted. It is possible to separate the two classes of points via a straight line. In fact, many...
-
In Example 4.12, we applied a principal component analysis (PCA) to the iris data, but refrained from classifying the flowers based on their feature vectors \(\boldsymbol{x}\). Implement a 1-nearest...
-
In Example 7.6 we used the feature map \(\boldsymbol{\phi}(\boldsymbol{x})=\left[x_{1}, x_{2}, x_{1}^{2}+x_{2}^{2} ight]^{\top}\) to classify the points. An easier way is to map the points into...
Study smarter with the SolutionInn App