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Business, 22.02.2021 22:50 neariah24

Sarah is considering purchasing a house for $178,000. The owner is willing to finance 85% of the purchase price with an 8% mortgage with amortization over 15 years. If the lender also charges 2 points upfront and 3% pre-payment penalty, what is the effective cost of this loan to her if she pay off the loan at the end of year 3

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