Suppose you borrow $100,000 PLAM (Price Level Adjusted Mortgage) for 30 years, monthly payments with $3,000...
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Suppose you borrow $100,000 PLAM (Price Level Adjusted Mortgage) for 30 years, monthly payments with $3,000 origination cost. The mortgage rate is 5% with annual outstanding balance adjustments based on the following home price information: Home Price Year 1 2 3-30 4% -5% 0 1) What is the effective cost of this loan if you holding the loan for only 1 year? 2)What is APR (annual percentage rate) for this PLAM loan? Suppose you borrow $100,000 PLAM (Price Level Adjusted Mortgage) for 30 years, monthly payments with $3,000 origination cost. The mortgage rate is 5% with annual outstanding balance adjustments based on the following home price information: Home Price Year 1 2 3-30 4% -5% 0 1) What is the effective cost of this loan if you holding the loan for only 1 year? 2)What is APR (annual percentage rate) for this PLAM loan?
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1 Effective Cost of Loan after 1 Year The effective cost after 1 year includes the total monthly pay... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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