What is the yield to the lender (APR, expressed traditionally) on a fixed rate, fully amortizing...

What is the yield to the lender (APR, expressed traditionally) on a fixed rate, fully amortizing loan for $900,000, 30-years, at 5.5% interest if the lender charges 2.5 points at origination?

Solutions

Expert Solution

Yield to the lender

Using Excel

enter the below formula

=RATE(12*30,PMT(5.5%/12,12*30,-900000),-900000*(1-2.5%))*12
=5.731%

jeff jeffy answered 2 years ago

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