The buyer obtains the necessary loan commitment from Clearwater Bank. The appraised value of the property...
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The buyer obtains the necessary loan commitment from Clearwater Bank. The appraised value of the property is $580,000. The terms of the commitment include an 80% loan for 30 years at 6½% annual interest, a 1% origination fee, and two discount points. (Remember that the seller has agreed to pay for a portion of the discount points.) What would the discount be for the buyer and how to calculate discount points? The buyer obtains the necessary loan commitment from Clearwater Bank. The appraised value of the property is $580,000. The terms of the commitment include an 80% loan for 30 years at 6½% annual interest, a 1% origination fee, and two discount points. (Remember that the seller has agreed to pay for a portion of the discount points.) What would the discount be for the buyer and how to calculate discount points?
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SOLUTION To calculate the loan amount origination fee and discount poin... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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