6. Consider a $250,000 mortgage loan with an annual interest rate of 5.5%. The loan term is 10 years but the monthly payments are based on a 30-year amortization schedule. a. What is the monthly payment? [1] b. What will be the balloon payment at the end of the 10 year term? [1] 7. Consider a $350,000 loan with an annual interest rate of 6% and a 30-year term. Discount points are equal to 2% of the loan amount. All other up-front costs to be paid by the borrower total $4000. a. Compute the monthly payment. [1] b. What is the effective borrow cost assuming that the loan remains outstanding to maturity (i.e. no prepayment). [1]