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A Lender Offers You a Fixed-Rate Mortgage for $145,000 at 6.25

Question 11

Multiple Choice

A lender offers you a fixed-rate mortgage for $145,000 at 6.25% for 30 years, monthly payments,with 0.75 discount points.If you repay the loan balance at the end of year four,what is the effective cost of the loan?


A) 6.32%
B) 6.47%
C) 7.00%
D) 6.25%
E) none of the above

Correct Answer:

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