#1 Your local lender offers you a fixed-rate mortgage with the following terms: $250,000 at 5.25% for 30 years, monthly payments. The lender will charge you two discount points and the loan has a 4% prepayment penalty for the first 8 years of life.

C. Suppose that your effective cost over a five-year holding period is 6.50%. What amount of other fees did you pay?