3. Calculate the lender's yield on a constant amortization mortgage loan for $950,000 with monthly payments...

 

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3. Calculate the lender's yield on a constant amortization mortgage loan for $950,000 with monthly payments over 15 years at 6% interest with 1.75 points assuming the borrower prepays the loan at the end of year 6. Loan Amount Annual Interest Rate Discount Points Maturity (in years) Periods per year Prepayment Month Monthly Amortization 3 Balance at EOY 6 $950,000.00 6.00% 1.75% 15 12 82 $5,277.78 $570,000.00 Month 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Payment. $0.00 $5,277.78 Yield to Lender CAM Loan Amortization Schedule Interest Principal 0 0 Using IRR Function Balance $950,000.00 #NUM! Cash Flows $0.00 3. Calculate the lender's yield on a constant amortization mortgage loan for $950,000 with monthly payments over 15 years at 6% interest with 1.75 points assuming the borrower prepays the loan at the end of year 6. Loan Amount Annual Interest Rate Discount Points Maturity (in years) Periods per year Prepayment Month Monthly Amortization 3 Balance at EOY 6 $950,000.00 6.00% 1.75% 15 12 82 $5,277.78 $570,000.00 Month 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Payment. $0.00 $5,277.78 Yield to Lender CAM Loan Amortization Schedule Interest Principal 0 0 Using IRR Function Balance $950,000.00 #NUM! Cash Flows $0.00

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To calculate the lenders yield on a constant amortization mortgage loan we need to determine the tot... View the full answer