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Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for...

Ann is looking for a fully amortizing 30 year Fixed Rate Mortgage with monthly payments for $1,250,000. Mortgage A has a 4.38% interest rate and requires Ann to pay 1.5 points upfront. Assuming Ann makes payments for 30 years, what is Ann’s IRR from mortgage A? Note: IRR is always annualized. If you’ve found a monthly rate, multiply by 12. In this case, two digits for a monthly rate is not enough to avoid rounding errors in the annual rate – so either keep at least three digits or multiply right away w/o writing down the rounded number

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jeff jeffy answered 1 year ago
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