The actual prepayment penalty under the terms of the apartment building owner’s mortgage is 2% of the balance of the loan. If the owner goes ahead with the refinancing, what was the effective interest rate on the loan over the original ten years? On a $6,000,000, 30 yr, 7.5% Mortgage, With refinance rate of 6%?

Answer rating: 100% (QA)

First lets calculate the monthly payment for the original loan us... View the full answer