Suppose that you have borrowed $175,000 in the form of a 20-year fixed rate mortgage with the

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Suppose that you have borrowed $175,000 in the form of a 20-year fixed rate mortgage with the following terms:

Interest Rate: 5% per year with monthly payments and compounding. Origination Fee: 0.5%

Points: 1.75

Third-Party Closing Costs: $2,500

If you pay off this loan at the end of the 5th year, what will be the lender’s yield?

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Nov 18, 2019 05:21 AM

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Suppose that you have borrowed $175,000 in the form of a 20-year fixed rate mortgage with the

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PV Loan TakenInitial Inflow 175000 05 175000 00175 175000 2500 171594375 ... View the full answer

Microeconomics An Intuitive Approach with Calculus

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