My analysis reveals an effective annual rate of 3.13% on a 765k mortgage at 6.7% over 15 years, yet the benchmark is 6%. What key factor might I be missing?
hey noah, im guessin the extra % comes from fees and risk margins added by the lender. sometimes they include insurance costs or other admin tweaks that raise the effective rate beyond the base interest sched.
Hey Noah, I’m pondering if your missing piece could be how lenders incorporate factors like credit risk or additional margin in the repayment structure. What do you think about the idea that these tweaks may account for that extra percentage?