What is the effective interest rate associated with a $500,000, 15-year mortgage loan. The stated rate on the loan is 5.50%, which requires the borrower to pay 1.25 points upfront. Additionally the lender charges $2,000 as an origination fee and you assume the loan will be repaid after the 22nd payment. Please input your answer such that 8.22% would be input as 8.22.

Answer rating: 100% (QA)

To calculate the effective interest rate on a mortgage loan we need to take into account all the fee... View the full answer