A borrower takes out a 30-year FRM for $300,000 with an annual interest rate of 4% plus

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A borrower takes out a 30-year FRM for $300,000 with an annual interest rate of 4% plus 3 discount points. All the loan closing fees is $3,000 including fees to third parties. The monthly payment of the loan is $1,432.2459.

Q: If the borrower is planning to prepay at the end of year 10, what's the EBC of this loan?

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Real Estate Principles A Value Approach

ISBN: 978-0077836368

5th edition

Authors: David C Ling, Wayne Archer

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Posted Date: Apr 24, 2024 02:31 AM

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A borrower takes out a 30-year FRM for $300,000 with an annual interest rate of 4% plus

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To calculate the EBC Effective Borrowing Cost of the loan we need to consider the original loan amou... View the full answer

Real Estate Principles A Value Approach

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