Hai Mortgage Icepts Excel Assignment: Module 71. Origination Fees and Discount Points without PrepaymentA lender is offering a 30-year, monthly payment fixed rate mortgage (FRM) loan at 4.5% with an $800 origination fee and 2.5discount points. A borrower wants a loan for $538,000. What is the yield to the lender, the effective borrowing cost to theborrower, and the APR assuming the loan is held to maturity? Use both the IRR and RATE functions in the greenhighlighted cells as indicated.Loan AmountAnnual Interest RateOrigination FeeDiscount PointsMaturity (in years)Periods per year$538,000.004.50%$800.002.50%Month301201234567891011121314151617181920Cash Flow-$523,750.00$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2,725.97$2.725.97Using IRR FunctionYield to LenderEffective borrowing cost to borrowerAPRUsing RATE FunctionYield to LenderEffective borrowing cost to borrowerAPR4.73%4.73%4.73%4.73%4.73%4.73%

Yield to Lender: The yield to a lender refers to the return the lender receives on their investment,…

. Origination Fees and Discount Points without Prepayment lender is offering a 30-year, monthly payment fixed rate mortgage (FRM) loan at 4.5% with an $800 origination fee and 2.5 iscount points. A borrower wants a loan for $538,000. What is the yield to the lender, the effective borrowing cost to the orrower, and the APR assuming the loan is held to maturity? Use both the IRR and RATE functions in the green ghlighted cells as indicated. oan Amount nnual Interest Rate rigination Fee iscount Points Maturity (in years) eriods per year $538,000.00 4.50% $800.00 2.50% Month 30 12 0 Cash Flow $522.750.00 Using IRR Function Yield to Lender Effective borrowing cost to borrower APR Using RATE Function Yield to Lender Effective borrowing cost to borrower APR 4.73% 4.73% 4.73% 4.73% 4.73% 4.73%

. Origination Fees and Discount Points without Prepayment lender is offering a 30-year, monthly payment fixed rate mortgage (FRM) loan at 4.5% with an $800 origination fee and 2.5 iscount points. A borrower wants a loan for $538,000. What is the yield to the lender, the effective borrowing cost to the orrower, and the APR assuming the loan is held to maturity? Use both the IRR and RATE functions in the green ghlighted cells as indicated. oan Amount nnual Interest Rate rigination Fee iscount Points Maturity (in years) eriods per year $538,000.00 4.50% $800.00 2.50% Month 30 12 0 Cash Flow $522.750.00 Using IRR Function Yield to Lender Effective borrowing cost to borrower APR Using RATE Function Yield to Lender Effective borrowing cost to borrower APR 4.73% 4.73% 4.73% 4.73% 4.73% 4.73%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 5FPE

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