Constant Amortizing Mortgage Create an amortization schedule and answer the following questions for a $600,000 30-year...

Constant Amortizing Mortgage Create an amortization schedule and answer the following questions for a $600,000 30-year fully-amortizing CAM loan with monthly payments. The contract interest rate on the loan is 3.25% and there are no points associated with the loan.

a.) Assuming no upfront fees/points or prepayment penalty, what is the EIR if the mortgage is prepaid in full at the end of year 7?

b.) Assuming 1 point in origination fees but no prepayment penalty, what is the EIR if the mortgage is prepaid in full at the end of year 7?

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c.) Assuming 1 point in origination fees and a 2% prepayment penalty, what is the EIR if the mortgage is prepaid in full at the end of year 7?

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Calculations:

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jeff jeffy answered 1 year ago

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