You have been offered a 30-year mortgage at 6.00% for $300,000. The original loan to value is

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You have been offered a 30-year mortgage at 6.00% for $300,000. The original loan to value is 90% and thus the loan requires PMI. The loan requires PMI payments of $120 per month for 100 payments.

What is the effective interest rate on this loan if paid over the 30-year period?

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Mar 20, 2023 12:54 AM

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You have been offered a 30-year mortgage at 6.00% for $300,000. The original loan to value is

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To calculate the effective interest rate on a mortgage with PMI payments we need to take into accoun... View the full answer

Corporate Finance A Focused Approach

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