Question: For a reverse mortgage with: 20-year term loan amount $200,000 Interest rate 8% There is no origination fee If the origination fee is $4,000, what

For a reverse mortgage with:

  • 20-year term

  • loan amount $200,000

  • Interest rate 8%

  • There is no origination fee

If the origination fee is $4,000, what is the effective cost if the senior passes away in 5 years?

23.45%

12.45%

22.61%

16.23%

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