Mortgage with Points Home loans sometimes involve points, which are Page 158 fees charged by the lender Each point charged means that the borrower must pay 1 of the loan amount as a fee For example, if the loan is for $100,000 and 2 points are charged, the loan repayment schedule is calculated on a $100,000 loan but the net amount the borrower receives is only $98,000 Assume the interest rate is 1 per month What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 360 months ( 48 Mortgage with Points Home loans sometimes involve points, which are Page 158 fees charged by the lender Each point charged means that the borrower must pay 1 of the loan amount as a fee For example, if the loan is for $100,000 and 2 points are charged, the loan repayment schedule is calculated on a $100,000 loan but the net amount the borrower receives is only $98,000 Assume the interest rate is 1 per month What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 360 months (

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Question: Mortgage with Points. Home loans sometimes involve points, which are Page 158 fees charged by the lender. Each point charged means that the borrower must

Mortgage with Points. Home loans sometimes involve "points," which are\ Page 158\ fees charged by the lender. Each point charged means that the borrower must pay

1%

of the loan amount as a fee. For example, if the loan is for

$100,000

and 2 points are charged, the loan repayment schedule is calculated on a

$100,000

loan but the net amount the borrower receives is only

$98,000

. Assume the interest rate is

1%

per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 360 months? (

$Mortgage with Points. Home loans sometimes involve "points," which are\ Page$

48. Mortgage with Points. Home loans sometimes involve "points," which are Page 158 fees charged by the lender. Each point charged means that the borrower must pay 1% of the loan amount as a fee. For example, if the loan is for $100,000 and 2 points are charged, the loan repayment schedule is calculated on a $100,000 loan but the net amount the borrower receives is only $98,000. Assume the interest rate is 1% per month. What is the effective annual interest rate charged on such a loan, assuming loan repayment occurs over 360 months? (

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