Question: You are borrowing $ 1 0 0 , 0 0 0 to purchase a house. The interest rate is 3 . 5 % over 1

You are borrowing $100,000 to purchase a house. The interest rate is 3.5% over 15 years, with monthly payments, and there is a $1,000 origination fee on the mortgage. What is the APR or true cost of borrowing (in %) taking into account the origination fee? Enter your answer in decimal format, using four decimal places. For example, 4.25% would be entered as .0425

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:

A homebuyer intends to purchase a $300,000 home. The two financing options available to the buyer are: 1) he can obtain an 80% loan at a 5% interest rate with monthly payments amortized over 30years...

Q:

3.00% 3.1996 11. What is your EBC on the loan described in question #10 if, in addition to the two discount points, you paid $10,000 in closing costs to close the loan, and you then sell the office...

Q:

This quiz: 13 point(s) possible This question: 1 point(s) possible Question 9 of 13 Submit quiz Find the taxable income. Use $4000 for each exemption. Number of exemptions Adjusted gross income...

Q:

13. David Puddy went to Waltham Toyota shopping for a new car. The car dealership offered David two purchase options. David can (1) purchase a new car for $30,000 with a 1.80% annual interest rate...

Q:

As a commercial investment broker, you have been working with a potential investor for the last six months. The investors, Doctors William and Joan Carpenter, have sold the smaller apartment...

Q:

Part One As a commercial investment broker, you have been working with a potential investor for the last six months. The investors, Doctors William and Joan Carpenter, have sold the smaller apartment...

Q:

Part One As a commercial investment broker, you have been working with a potential investor for the last six months. The investors, Doctors William and Joan Carpenter, have sold the smaller apartment...

Q:

1. You are planning for an early retirement, starting at age 18 you decide to invest $7,000 per year; you plan to retire when you accumulate $1,000,000. If the average rate of return on your...

Q:

Assignment 12A 1. You are planning for an early retirement, starting at age 18 you decide to invest $7,000 per year; you plan to retire when you accumulate $1,000,000. If the average rate of return...

Q:

As a commercial investment broker, you have been working with a potential investor for the last six months. The investors, Doctors William and Joan Carpenter, have sold the smaller apartment...

Q:

IPsec (Internet Protocol Security), SSTP (Secure Socket Tunneling Protocol), and PPTP (Point-to- Point Tunneling Protocol) are popular VPN (Virtual Private Network) protocols. Research on internet...

Q:

Consider the research described in Exercise 11.4.6 in which 10 women in an aerobic exercise class, 10 women in a modern dance class, and a control group of 9 women were studied. One measurement made...

Q:

Select all that apply What does it mean if \ ( \ beta _ { \ mathrm { i } } \ ) is equal to zero? It means the ith stock has only systematic risk but no unsystematic risk. It means the ith stock has...

Q:

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

Q:

3 The Amish forgive those involved in conflict with them because of their deeply held religious beliefs. Are there other reasons for forgiveness that can be useful in a conflict?

Q:

4 What is your reaction to the information on Amish forgiveness in light of what we learned about Amish shunning earlier in the chapter?

Q:

Think of an attitude you have about conflict that is making it difficult for you to talk productively about disagreements with someone in your life. For example, do you believe that discussing...