1.For a $240,000 loan with monthly payments, at 8% interest for 25 years, the borrower...
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1.For a $240,000 loan with monthly payments, at 8% interest for 25 years, the borrower had to pay 2 points in origination fees at the time the loan was made. If that loan is paid off in 5 years what is the effective yield of the loan, including the origination fees
2. (using info from question 2) Now presume that in addition to the points at the origination above, the borrower also has to pay 1 point in prepayment penalty at the time the loan is paid off. What is the EFFECTIVE yield including the origination fees and the prepayment penalty
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