Gail wants to buy a property with a first mortgage of $395,000 at 7.25% compounded semi-annually not in advance, and a second mortgage of $200,000 at 3.95% interest compounded semi-annually, not in advance. What is the average mortgage rate for the two mortgages (rounded to one decimal place)?

Answer rating: 100% (QA)

To calculate the average mortgage rate for the two mortgages we need to consider the total interest paid on both mortgages and then divide it by the t... View the full answer