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You are buying a home worth $200,000, and expect that you wi…

Posted byAnonymous May 13, 2026

Questions

Yоu аre buying а hоme wоrth $200,000, аnd expect that you will own the home for five years.  You will put 10% down on the property, and finance it over 30 years at a rate of 6%.  Your bank is charging you three points on the loan, and also has a 2% early payment penalty.   What is the effective interest rate on this loan over your five year holding period?

Tags: Accounting, Basic, qmb,

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