A 30-year fully amortizing constant payment mortgage is originated for $600,000 with a 6.0% interest rate. Payments

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A 30-year fully amortizing constant payment mortgage is originated for $600,000 with a 6.0% interest rate. Payments are monthly and the loan includes 3 points in upfront fees.

Calculate the following:

A. The annual percentage rate (APR)

B. The remaining mortgage balance at the end of year 5

C. The effective interest rate (EIR) assuming the loan is prepaid at the end of year 5 and the loan has a 5% prepayment penalty?

Related Book For answer-question

Real Estate Finance and Investments

ISBN: 978-0073377339

14th edition

Authors: William Brueggeman, Jeffrey Fisher

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Posted Date: Jul 10, 2023 12:59 AM

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A 30-year fully amortizing constant payment mortgage is originated for $600,000 with a 6.0% interest rate. Payments

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To calculate the requested values for the 30year fully amortizing constant payment mortgage well need to use the provided information and perform some calculations Lets proceed step by step Given Loan ... View the full answer

Real Estate Finance and Investments

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