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Consider a 6%, 30 year, $200,000 level payment mortgage with a monthly payment of $1,199.10. Assume...

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Finance

  1. Consider a 6%, 30 year, $200,000 level payment mortgage with amonthly payment of $1,199.10. Assume up front financing cost(includes all costs paid to the lender and third parties exceptdiscount points) equal $3,000.
    1. Find the EBC if the borrower repays the loan after two years(assuming no direct points).
    2. What is the EBC if the lender charges one discount point?
    3. What is the EBC if the lender charges 2.5 discount point?

Answer & Explanation Solved by verified expert
3.9 Ratings (734 Votes)
Month Opening Loan Os Interest Opening Loan os interest Monthly Payment Closing Loan Os A B C AB D E C D 1 20000000 100000 20100000 119910 19980090 2 19980090 99900 20079990 119910 19960080 3 19960080 99800 20059881 119910 19939971 4 19939971 99700 20039671 119910 19919761 5 19919761 99599 20019360 119910 19899450 6 19899450 99497    See Answer
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Consider a 6%, 30 year, $200,000 level payment mortgage with amonthly payment of $1,199.10. Assume up front financing cost(includes all costs paid to the lender and third parties exceptdiscount points) equal $3,000.Find the EBC if the borrower repays the loan after two years(assuming no direct points).What is the EBC if the lender charges one discount point?What is the EBC if the lender charges 2.5 discount point?

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