$1.-$ Fixed$-$Rate CPM Loan With Discount Points

Consider a scenario where you are in the process of purchasing a property and you are presented with two mortgage options. Both options involve a loan amount of $$200,000.$

$1)$ a $30-$year fixed$-$rate CPM loan at $6\mathrm{.}0\%$ with no discount points, and

$2)$ a $30-$year fixed rate CPM loan at $5\mathrm{.}5\%$ with an additional cost of $1\mathrm{.}5$ discount points.

The goal is to determine which option would be more financially advantageous.

$2.-$ : Effective Borrowing Cost

Consider a homebuyer who secures a fixed rate CPM mortgage of $$200,000.$ The mortgage carries a nominal interest rate of $5\mathrm{.}5\%$ over a $30-$year term, and the borrower pays an upfront fee of $1\mathrm{.}5\%$ of the loan amount. What is the effective borrowing cost of this loan?

$3.-$ Fixed$-$Rate CPM Loan With Discount Points and Early Repayment

Two options are available for a $$200,000$ mortgage:

$1)$ a $30-$year fixed$-$rate CPM loan at $6\mathrm{.}0\%$ with no discount points, and

$2)$ a $30-$year fixed$-$rate CPM loan at $5\mathrm{.}5\%$ with points.

If you are planning on living in the house for $7$ years, what is the most you are willing to pay in points for the $5\mathrm{.}5\%$ mortgage?

$4.-$ Interest$-$Only Mortgage

An interest$-$only mortgage is made for $$80,000$ at $6$ percent interest rate for $10$ years. The lender and borrower agree that monthly payments will be constant and will require no loan amortization.

a$.$ What will be the monthly payments?

b$.$ What will be the loan balance after five years?

c$.$ If the loan is repaid after five years, what will be the yield to the lender?

$5.-$ Loan Price

In $5$ years ago, a borrower took out a fully amortized mortgage of $$200,000$ at a $6$ percent interest rate for $20$ years.

Now, with a decrease in the interest rates, the current market interest rate is $4\%.$

What is the market value of this loan?

ANSWER ALL PLEASE