A fully amortizing mortgage loan in the amount of $ 92,758 for 20 years with payments to be made monthly is offered to a borrower at 8.5%However, the borrower indicated that he or she wanted to reduce the contract rate by 1%. The lender felt comfortable discounting the loan by offering to loan the borrower the same amount of money$92, 758 for 20 years at a fixed rate of 7.5% with constant payments but only if the borrower would pay the lender an up front fee of $3,330 paid directly to the lender. In addition, if the borrower accepts this loan, the borrower would be required to pay an additional 1% in origination fees to the lender on top of a $500 charge to an appraiser for appraisal fees. Assuming the borrower and lender initiate this loan, compute Lender's Yield (expressed in annual terms). Express yor answer as a % rounded to two decimal places .I GOT 8.13 please confirm
A fully amortizing mortgage loan in the amount of $ 92,758 for 20 years with payments to be made monthly is offered to a borrower at 8.5%However, the borrower indicated that he or she wanted to reduce the contract rate by 1%. The lender felt comfortable discounting the loan by offering to loan the borrower the same amount of money$92, 758 for 20 years at a fixed rate of 7.5% with constant payments but only if the borrower would pay the lender an up front fee of $3,330 paid directly to the lender. In addition, if the borrower accepts this loan, the borrower would be required to pay an additional 1% in origination fees to the lender on top of a $500 charge to an appraiser for appraisal fees. Assuming the borrower and lender initiate this loan, compute Lender's Yield (expressed in annual terms). Express yor answer as a % rounded to two decimal places .I GOT 8.13 please confirm
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A fully amortizing mortgage loan in the amount of $
92,758 for 20 years with payments to be made
monthly is offered to a borrower at 8.5%However,
the borrower indicated that he or she wanted to
reduce the contract rate by 1%. The lender felt
comfortable discounting the loan by offering to loan
the borrower the same amount of money$92, 758 for
20 years at a fixed rate of 7.5% with constant
payments but only if the borrower would pay the
lender an up front fee of $3,330 paid directly to the
lender. In addition, if the borrower accepts this loan,
the borrower would be required to pay an additional
1% in origination fees to the lender on top of a $500
charge to an appraiser for appraisal fees. Assuming
the borrower and lender initiate this loan, compute
Lender's Yield (expressed in annual terms). Express
yor answer as a % rounded to two decimal places .I
GOT 8.13 please confirm
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