Question: Suppose that a lender originates a 30 year fixed rate loan that is fully amortizing with constant monthly payments. Further, assume that lender charges $867.89

  1. Suppose that a lender originates a 30 year fixed rate loan that is fully amortizing with constant monthly payments. Further, assume that lender charges $867.89 in origination fees. Under which scenario below will lenders yields be the greatest? a. the borrower repays after 2 years b. the borrower repays after 3 years. c The borrower repays after 30 years. d. not enough information to tell.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

David R. and Ella M. Cole (ages 39 and 38, respectively) are husband and wife who live at 1820 Elk Avenue, Denver, CO 80202. David is a self-employed consultant, specializing in retail management and...

Q:

please answer well and for the part 2 questions please show work in any format you want Part I .Multiple choice: For each of the questions below, select one and only one answer. PUT THE LETTER IN THE...

Q:

What is the effective yield to the lender on a $1,440,000 fixed rate loan that is fully amortizing over 20 years with equal monthly payments if the stated annual interest rate in the loan agreement...

Q:

Suppose the rate on a 30 year fixed rate loan is quoted by your lender as 6% with monthly compounding. The home that you are buying has an agreed on price of $1 million. You plan on putting down a...

Q:

2. Suppose the rate on a 30 year fixed rate loan is quoted by your lender as 6% with monthly compounding. The home that you are buying has an agreed on price of $1million. You plan on putting down a...

Q:

Suppose that a lender originates a 30-year fixed rate loan that is fully amortizing with constant monthly payments. Further, assume that the lender charges $867.89 in origination fees. Under which...

Q:

Suppose that a lender originates a 30-year fixed rate loan that is fully amortizing with constant monthly payments. Further, assume that the lender charges $867.89 in origination fees. Under which...

Q:

v When looking at residential mortgage loans, they come in various types" or classifications. These are primarily determined by Ch The credit quality of the borrower The regulatory status of the...

Q:

Complete/answer each of the following problems providing an Excel spreadsheet with the solution to receive full credit. For example, create the loan amortization table for each of the problems. 1-...

Q:

Use the following to answer questions 1-4. You currently live (rent free) in your parents' basement but it's a bit awkward when you bring dates home.Your friends are looking for a new roommate and...

Q:

You currently live (rent free) in your parents' basement but it's a bit awkward when you bring dates home. Your friends are looking for a new roommate and have asked if you're interested in moving...

Q:

Match each situation with the fraud triangle factor (opportunity, financial pressure, or rationalization) that best describes it. (a) An employees monthly credit card payments are nearly 75% of their...

Q:

a) b) c) d) Find the magnetic flux density of a finite length conductor of radius 12cm and current 3A in air 7x10-6 6x10-6 4x10-6 5x10-6 5010303

Q:

What is an advantage of a higher credit limit ? You are able to make larger purchases if you need to You can more easily take out debt you'll have a hard time repaying Higher credit limits come with...

Q:

last two options for the multiple choice are : performance management development A construction equipment manufacturer, Roswell Corporation, is focusing on becoming a leader in sustainability in...

Q:

For each of the following situations, indicate whether the direct or the indirect organizational plan would be most appropriate and why. (Objective 2) a. One of your sales representatives applied for...

Q:

Explain why spell checkers and style checkers do not replace proofreading. (Objective 2 )

Q:

Using the indirect plan, indicate the most coherent order for these sentences by listing their letters in that order: a. The evening meal is a perfect time for families to talk and share events of...