In: Finance
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?
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%