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| October 2000 |
Volume
II - Issue 7
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Front
Page
About
Us |
INVESTING IN REAL ESTATE
From the standpoint of the investor, 1 discount point received increases
the yield on the loan by 1/8%. Two points would increase the yield by
¼%, 4 discount points ½%, 6 discount points by ¾% and 8 points by 1%.
For example, if a loan carried an interest rate of 91/2% and a discount
of 6 points, the yield to the investor would be calculated as follows:
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