A mortgage loan of $240,000 has just been made on a property valued at $300,000. The interest rate is 4.8% 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? e. If the mortgage is paid off after 8 years what will the effective yield be? f. After 5 years, interest rates fall, and a new loan is available at 4.5% for 25 years. The lender making the new loan requires refinancing cost of 1%, including origination fees and points. Given the opportunity cost of 5%, what is the NPV of the refinance opportunity? Should the borrower refinance the loan?