A lender just closed a standard fixed$-$rate, home mortgage for a $$350,000$ loan amount. The annual loan interest rate is $7\mathrm{.}5\%.$ Payments are due monthly for $25$ years. The mortgage also requires $2$ points and has a $3\%$ prepayment penalty, but the lender is waiving any other fees. a$)$ What is the monthly payment on the mortgage? b$)$ What is the value of the APR that the lender is required to disclose to the borrower? c$)$ How much of the first month$$s payment will count as interest paid and how much will count as repayment of principal? d$)$ What is the tax significance for the borrower of the distinction made in $($c$)$ between what counts as interest and what counts as repayment of principal? $($one or two sentences only$).$ e$)$ What is the loan balance after $8$ years $($i$.$e$.$ after the $96$th monthly payment is made$)?$ f$)$ The lender is considering that she will sell the mortgage $8$ years after the loan is made. She expects the market interest rate at that time for comparable mortgages $($with $17$ years remaining to maturity$)$ will be $8\mathrm{.}5\%.$ What market price does she expect to receive for the loan under these circumstances? g$)$ The borrower is also considering that he might prepay the mortgage after $8$ years. If he does this, what is the annual effective interest rate that he will actually pay over the $8-$year period the loan was outstanding? Question $1($Assume monthly payments$)$ A lender just closed a standard fixed$-$rate, home mortgage for a $\backslash (\backslash$$ $350,000\backslash )$ loan amount. The annual loan interest rate is $\backslash (7\mathrm{.}5\backslash \%\backslash ).$ Payments are due monthly for $25$ years. The mortgage also requires $2$ points and has a $\backslash (3\backslash \%\backslash )$ prepayment penalty, but the lender is waiving any other fees. a$)$ What is the monthly payment on the mortgage? b$)$ What is the value of the APR that the lender is required to disclose to the borrower? c$)$ How much of the first month's payment will count as interest paid and how much will count as repayment of principal? d$)$ What is the tax significance for the borrower of the distinction made in $($c$)$ between what counts as interest and what counts as repayment of principal? $($one or two sentences only$).$ e$)$ What is the loan balance after $8$ years $($i$.$e$.$ after the $\backslash (96^\{\backslash$text $\{$th $\}\}\backslash )$ monthly payment is made$)?$ f$)$ The lender is considering that she will sell the mortgage $8$ years after the loan is made. She expects the market interest rate at that time for comparable mortgages $($with $17$ years remaining to maturity$)$ will be $\backslash (8\mathrm{.}5\backslash \%\backslash ).$ What market price does she expect to receive for the loan under these circumstances? g$)$ The borrower is also considering that he might prepay the mortgage after $8$ years. If he does this, what is the annual effective interest rate that he will actually pay over the $8-$year period the loan was outstanding?