Calculator Problem – 02/25/2013

If you have a thirty year fixed loan for $720,000 at 3.75% and you wrap it with a thirty year fixed rate loan for $810,000 at 6%, how much will you yield on your equity?

(The answer will be posted with the new calculator problem in 2 weeks. Or if you can’t wait that long, you can go to http://www.facebook.com/pages/Gary-Johnston-Seminars/111368472221424 for the answer.)

(N=360,I=6,PV=810,000, FV=0) PMT = -4856.36