On the loan below, what is the best estimate of the effective borrowing cost if the loan is prepaid 5 years after origin
Posted: Sun Jul 03, 2022 6:43 am
On the loan below, what is the best estimate of the effective borrowing cost if the loan is prepaid 5 years after origination? Loan amount Interest rate compounding periods maturity (yrs) Up-front costs paid at closing O 8.40% O 8.70 O 8.50% O 8.37% $275,000 5.8% 12 25 10%