14. Consider a $400,000 mortgage loan with an annual interest rate of 3%. The loan term is 7 years, but monthly payments will be based on a 20-year amortization schedule. What is the monthly payment? What will be the required balloon payment at the end of the loan term? 15. The mortgage lender originates your loan as a level-payment mortgage with the following terms: Annual interest rate: Loan term: Payment frequency: Loan amount: Total up-front financing costs (including discount costs) Discount points to lender: 4 percent 15 years Monthly $300,000 $ 4,500 $ 2,000 c. a. Calculate the annual percentage rate (APR) for Truth-in-Lending purposes. b. Calculate the lender's yield with no prepayment. Calculate the lender's yield with prepayment in five years. d. Calculate the effective borrowing costs (EFC) with prepayment in five years. Remember: The first step is to solve for the payment