Question
Ruby obtains a $500,000 fully amortizing CPM loan with a 3.25 percent interest rate and term...
Ruby obtains a $500,000 fully amortizing CPM loan with a 3.25 percent interest rate and term of 30 years. The loan includes 2 points in upfront fees. If Ruby expects to sell the house and repay the loan in 12 years, what is the EIR on the loan?
Homework Answers
Answer #1
It is assumed that original loan term is to amortize in 30 years, by annyual payments.
Effective Annual Rate = 3.483451%
Calculation as below:
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