You're the president of a bank. You initiate a loan origination fee of 1.5% on mortgages. What is the APR that you (the bank) earn on a 700,000 loan that is expected to be prepaid after three years, with a 7.75% interest rate, amortized over thirty years, and makes semi-annual payments?

Answer rating: 100% (QA)

To calculate the APR Annual Percentage Rate earned by the bank on a mortgage loan with a loan origination fee we need to consider the total amount of ... View the full answer