A year ago Pyramid Mortgage Finance Company (PMFC) originated four balloon mortgages, each having a face value of $500,000. The four mortgages loans mentioned above are identical in their features and they all came from the same market area. The mortgages have an original amortization period of 25 years (300 months) with monthly payments. However, the original term-to-maturity of the mortgages is 11 years (132 months), which means that the outstanding loan amount of each mortgage is due at the end of the 11th year making them balloon mortgages. The prevailing market interest rate for such loans at the time the mortgages were originated was 8%. However, instead of charging the market interest rate, the Senior VP for mortgage finance, Ms. Elizabeth Greenwood, priced each mortgage loan with a combination of 7% contract interest rate and 5 discount points. The discount points were paid up-front by the borrowers at the time of origination. what is the apr of loan when loan was originated?