Question

What is the before tax effective cost of funds for a $100,000 loan at 5.00 percent interest, with monthly payments amortized over 25 years if the lender charges 2 points at origination and the borrower will incur $3,200 in third party loan costs? Assume the loan is outstanding for the full loan term which is seven years. $2,000,000. The loan was at 6.5% interest with monthly payments amortized over 25 years, but due and payable at the end of year 7. You paid 2.5 points to obtain the loan. How much is your Loan Cost Amortization each year?

          What is the before tax effective cost of funds for a $100,000 loan at 5.00
percent interest, with monthly payments amortized over 25 years if the
lender charges 2 points at origination and the borrower will incur $3,200 in
third party loan costs? Assume the loan is outstanding for the full loan term
which is seven years.
$2,000,000. The loan was at 6.5% interest with monthly payments
amortized over 25 years, but due and payable at the end of year 7. You
paid 2.5 points to obtain the loan.
How much is your Loan Cost Amortization each year?

Added by Caitlyn L.

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