Question: A borrower is purchasing a property for $325,000. She is considering the following three loans: Loan 1: 75% LTV, 30-year FRM, fully amortizing, 4% interest

A borrower is purchasing a property for $325,000. She is considering the following three loans: Loan 1: 75% LTV, 30-year FRM, fully amortizing, 4% interest Loan 2: 80% LTV, 30 year with 5 year IO period fully amortizing, 3.25% interest in IO period, 5 percent interest after IO period ends. Loan 3: 90% LTV, 15-year FRM, fully amortizing, 3.5% interest If the borrower held each loan until maturity, how much in interest would she pay on each loan?

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Loan 1 325000 x 4 13000 in interest Loan 2 325000 x 325 ... View full answer

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