In: Finance
Suppose you borrow $200,000 at 5% for 30 years, monthly
payments. You pay 2 discount points.
A. (1 pt) Your APR on this loan is 5.375%. What amount of other
financing fees did you pay?
B. (1 pt) Suppose that your effective cost over a five-year holding
period is 5.625%. What amount of other fees did you pay?
Part A: If APR is 5.375%, other fees paid= $4,268.14
Part B: If effective cost of 5 year holding period is 5.625%, other fees paid= $1,238.10
Calculation as below: