What is the eir if the mortgage is prepaid

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Create an amortization schedule and answer the following questions for a $750,000 15-year fully-amortizing CAM loan with monthly payments. The contract interest rate on the loan is 3.50% and there are no points associated with the loan.

a.) Assuming no upfront fees/points or prepayment penalty, what is the EIR if the mortgage is prepaid in full at the end of year 7?

b.) Assuming 2 points in origination fees but no prepayment penalty, what is the EIR if the mortgage is prepaid in full at the end of year 7?

c.) Assuming 2 points in origination fees and a 2% prepayment penalty, what is the EIR if the mortgage is prepaid in full at the end of year 7?

Reference no: EM133121430

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