Assume we have a $500,000 mortgage at 3.5% original interest rate, with a 30-year term and monthly payments. The interes
Posted: Sun Jul 03, 2022 6:43 am
Assume we have a $500,000 mortgage at 3.5% original interestrate, with a 30-year term and monthly payments. The interest ratecan be adjusted at the end of each year, and we assume the rateincreases 0.15% after the first year and another 0.5% after thesecond year. What is the effective yield of the mortgage if theloan is paid off at the end of the third year?