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House Price $2,500,000.00 Down Payment $50,000.00 Mortgage $2,450,000.00 Mortgage Clo...

House Price $2,500,000.00
Down Payment $50,000.00
Mortgage $2,450,000.00
Mortgage Closing Costs $5,000.00
Mortgage Buydown Points 1.75%
Total Mortgage Costs $47,875.00
Annual Contract Rate 4.00%
Term (years) 30
Payments per year 12
Total Number of Payments 360
Balloon $0.00

Assume that Annualized IRR = 4.15%, Is it higher or lower than the mortgage contract rate? and Why?

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Answer #1

Loan Periodic Rate Periods Monthly payment 4 2450000 0.33% 360 11696.67 Mortgage Closing Costs Mortgage Buydown Points Total

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