QUESTION 15 Paola is looking for a fully amortizing 30 year Fixed Rate Mortgage with...
90.2K
Verified Solution
Link Copied!
Question
Finance
QUESTION 15
Paola is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $4,500,000. Mortgage A has a 4.38% interest rate and requires Paola to pay 1.5 points upfront. Mortgage B has a 6% interest rate and requires Paola to pay zero fees upfront. Assuming Paola makes payments for six months before she sells the house and pays the bank the balance, what is Paolas annualized IRR from mortgage A? Write your answer as a percent rounded to two decimal points without the % sign (e.g. if you get 5.6499%, write 5.65).
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
