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4. A mortgage loan of $200,000 has just been made on a property valued at $250,000. The interest rate is 5.5% with 2 points with

4. A mortgage loan of $200,000 has just been made on a property valued at $250,000. The interest rate is 5.5% with 2 points with a 10 year balloon. Monthly amortization payments are based on a 30 year maturity. The mortgage also carries a 2% prepayment penalty.

a. What is the indicated loan-to-value ratio?

b. What is the monthly mortgage payment?

c. How much interest is paid in the fourth year?

d. What is the dollar amount of the balloon payment?



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