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What net amount does the lender disburse

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Reference no: EM132998680

To buy your dream home you use a 4/16 reset loan that pays interest only (bullet loan) for the first 4 years, followed with a reset payment to amortize over the remaining 16 years. The loan amount is $280,000 at 4.75%, with 2 discount points (to the lender) and $1450 in third party closing costs which the borrower must pay.

a) What net amount does the lender disburse?

b) What net amount do you as a borrower receive?

c) What is your monthly payment during the first 4 years?

d) What is your monthly payment during the remaining 16 years?

Reference no: EM132998680

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