What is the monthly payment associated with mortgage loan

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Reference no: EM133290477

Case: Dakota just purchased a house for $700,000. Dakota financed the purchase with a 15-year, fixed-rate, fully amortizing mortgage loan with monthly payments and an annual interest rate of 6.48%. The loan involved points of 1.20% and Dakota paid other up-front financing costs to the lender of $3,100 and up-front financing costs to third party service providers of $4,800. The original LTV ratio for the loan was 73%.

a. What is the monthly payment associated with the mortgage loan?

b. What will the current balance of the mortgage loan be in 3 years?

c. What is the lender's yield associated with the mortgage loan?

d. What is the effective borrowing cost associated with the mortgage loan if it is not paid off early?

e. What is the effective borrowing cost associated with the mortgage loan if it is paid off in 7 years?

Reference no: EM133290477

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