You want to borrow a 6.5%, 15 year constant payment mortgage (CPM) in the amount of $120,000. Assuming you will make monthly payment to fully amortize the loan, what is the APR of the loan if the lender charges 2 points? ? 6.50% 6.82% ? 7.01% 7.19%
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Given: Loan Amount = $120,000 Interest Rate = 6.5% per year Term = 15 years First, we need to convert the annual interest rate to a monthly interest rate: Monthly Interest Rate = Annual Interest Rate / 12 = 6.5% / 12 = Show more…
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