Purchase price: $320,000 LTV: 97% Term & Am: 25 years Interest Rate: 4.0% Holding period: 5 years Closing Costs PMI: .60% of original mortgage amount, paid per year on a monthly basis to the insurer Origination fee: 1% (paid to lender) Discount poiht: 1.00% (paid to lender) Underwriting fee: $750 (paid to lender) Survey: $400 (paid to surveyor) Appraisal: $500 (paid to appraiser)
Purchase price: $320,000 LTV: 97% Term & Am: 25 years Interest Rate: 4.0% Holding period: 5 years Closing Costs PMI: .60% of original mortgage amount, paid per year on a monthly basis to the insurer Origination fee: 1% (paid to lender) Discount poiht: 1.00% (paid to lender) Underwriting fee: $750 (paid to lender) Survey: $400 (paid to surveyor) Appraisal: $500 (paid to appraiser)
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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Question
Transcribed Image Text:Calculate the lender's yield (LY)
4.53 %
4.72 %
4.19 %
4.40 %
None of these are correct
How much total interest will be paid over the holding period?
O $55,299
O $69,439
$64,621
$58,277
None of these are correct
Transcribed Image Text:Purchase price: $320,000
LTV: 97%
Term & Am: 25 years
Interest Rate: 4.0%
Holding period: 5 years
Closing Costs
PMI: .60% of original mortgage amount, paid per year on a monthly basis to the insurer
Origination fee: 1% (paid to lender)
Discount poiht: 1.00% (paid to lender)
Underwriting fee: $750 (paid to lender)
Survey: $400 (paid to surveyor)
Appraisal: $500 (paid to appraiser)
What it the OMB at the end of the holding period?
$ 249,428
$ 292,567
O $ 250,752
$ 270,373
$ 258,868
O None of these are correct
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