You took out a fixed interest rate mortgage loan with an initial loan balance of $260,000, an annual nominal interest rate of 3.30%, and monthly payments based on a 30-year amortization schedule. Your mortgage lender charged a loan origination fee of $1,150 at closing. Assuming the loan is outstanding for the full term, what is the estimate for the annual effective cost of borrowing. 28% 0.28% 3.30% 3.34%
You took out a fixed interest rate mortgage loan with an initial loan balance of $260,000, an annual nominal interest rate of 3.30%, and monthly payments based on a 30-year amortization schedule. Your mortgage lender charged a loan origination fee of $1,150 at closing. Assuming the loan is outstanding for the full term, what is the estimate for the annual effective cost of borrowing. 28% 0.28% 3.30% 3.34%
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 6FPE
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You took out a fixed interest rate mortgage loan with an initial loan balance of $260,000, an annual nominal interest rate of 3.30%, and monthly payments based on a 30-year amortization schedule. Your mortgage lender charged a loan origination fee of $1,150 at closing. Assuming the loan is outstanding for the full term, what is the estimate for the annual effective cost of borrowing.
28%
0.28%
3.30%
3.34%
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