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Calculate the mortgage payment for each loan

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Reference no: EM132273056

You are considering two possible fixed-rate level payment loans, Loan A and Loan B. Loan A has the following information: loan amount is $300,000, 6.6% contract rate, 30 year maturity with monthly payments, it has a 1.5% upfront fee and a mortgage insurance fee of 1%. Loan B has the following information: loan amount is $300,000, 6.35% contract rate, 30 year maturity with monthly payments, it has a 4% upfront fee and a mortgage insurance fee of 1%.

  • Calculate the mortgage payment for each loan.
  • Calculate the APR of each loan given the points taken.
  • Which loan do you prefer? why?

Reference no: EM132273056

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