You bought a house with a $400,000 mortgage. You paid two points ($4,000). The mortgage is a fully amortizing, 30-year, monthly pay in arrears with a 5.00% coupon. Assuming you sell the house at the end of Year 5, what is the bank’s effective interest rate over this 5 year period?

Answer rating: 100% (QA)

To calculate the banks effective interest rate over the 5year period we need to calculate the total ... View the full answer