What is indicated loan-to-value ratio

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Reference no: EM131884411

A mortgage loan of $1,875,000 has just been made on a property valued at $2,500,000. The interest rate is 6% with 2 points. The loan will require level monthly payments to amortize the principal over 25 years. The mortage also carries a 1% prepayment penalty.

A. What is the indicated loan-to-value ratio?

B. What is the monthly mortage payment?

C. How much interest is paid in the fifth year?

D. If the mortage is paid off after 7 years what will be the effective yield?

Reference no: EM131884411

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