Ms. Jones made a mortgage 5 years ago for $180,000 at 3.25% interest and a 15 year

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Ms. Jones made a mortgage 5 years ago for $180,000 at 3.25% interest and a 15 year term. Rates have now risen to 6% for an equivalent loan. Ms. Jones' lender is willing to discount the loan by $17,000 if she will prepay the loan.

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What rate of return would Ms. Jones receive by prepaying the loan?

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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: Apr 19, 2023 12:46 AM

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Ms. Jones made a mortgage 5 years ago for $180,000 at 3.25% interest and a 15 year

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Expert Answer:

i Monthly payment at the original rate of 325 126480 calculated using PMT function of Excel Mortgage ... View the full answer

Real Estate Finance and Investments

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