You are interested in buying a small convenience store in Kyle for $600,000 as an investment. You want to put $100,000 down and obtain a $500,000, 30 year fully amortizing loan with an annual rate of 4.2% from XYZ Bank. The lender is going to charge you a 1 point origination fee and 2 discount points. Prior to closing XYZ Bank notifies you that you also have to pay $3,000 in closing costs to close the deal. What will your monthly payment be?
A) $2,357.06
B) $2,371.73
C) $2,445.09
D) $2,934.10
What is your EBC if you pay off the loan over the full 30 years ( rounded to 2 decimal places )
A) 3.76%
B) 4.20%
C) 4.46%
D) 4.51%
