# REE Chapter 17

The typical loan submission package includes the following elements
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Terms in this set (21)
A $100,000 participation loan is originated at 7.75 percent. Payments are to be amortized monthly over 20 years. The loan calls for an equity participation payment of 10 percent of the sale price at the end of 12 years. Assuming the property sells for$250,000, what is the effective borrowing cost of the loan? Assume that there are no up-front financing costs associated with the loan.