A fully amortizing mortgage loan in the amount of $100,000 is made at 12 percent interest for 20 years. Payments are to be monthly. If 3 points are deducted in closing costs, what is the effective interest rate for the loan? Problem 7: A mortgage loan in the amount of $100,000 is made at 12 percent interest for 20 years. Payments are to be monthly. What are the monthly payments if it is a negative amortizing loan and the loan balance will be $150,000 at the end of year 20