Home / Expert Answers / Finance / for-a-reverse-mortgage-with-20-year-term-loan-amount-300-000-interest-rate-8-there-is-no-origin-pa660

# (Solved): For a reverse mortgage with 20-year term loan amount \$300,000 Interest rate 8% There is no origin ...

For a reverse mortgage with

20-year term

loan amount \$300,000

Interest rate 8% There is no origination fee

What is the effective cost if the senior passes away in 5 years? Q13 to Q16 are based on the same assumptions as follows: For a reverse mortgage with 20-year term loan amount \$300,000 Interest rate 8% There is no origination fee What is the effective cost if the senior passes away in 5 years?

8.7%

8%

9.2%

8.6%

We have an Answer from Expert

### Expert Answer

To calculate the effective cost if the senior passes away in 5 years for a reverse mortgage with a 20-year term, a loan amount of \$300,000, and an interest rate of 8%, we need to determine the total amount of interest that will be paid on the loan, and then subtract any funds the senior receives from the loan
We have an Answer from Expert