What is the effective borrowing cost

Reference no: EM132182309

Question - Property Value is $350000, 30 year fixed rate, terms: 30, interest rate is 4.25%, required percent down 20%, closing costs 3000, origination points 1%, interest in rate if 2nd Mortgage used 1.5% (please write your process for doing this question, thanks!)

a. What is the effective borrowing cost?

b. How much of your payment is interest in the 1st month of the 5th year?

c. What is the remaining balance in the 6th month of the 6th year?

d. How much will your payment increase if you take out a second mortgage?

Reference no: EM132182309

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