Affan would like to purchase a home in Muscat. Currently, this home sells for approximately OMR 325,000. Lenders require at least a 15% down payment and for such high ratio mortgages, lenders add a 100 basis point (i.e. 1%) premium on to existing mortgage rates. The current rate on these mortgages is 6.25%, compounded fortnightly, over 30 years.

What are Affans fortnightly mortgage payments?

What is the lowest fortnightly mortgage payment that Affan can achieve by extending the amortization period on the loan to infinity?

Suppose a lender offers to loan Affan the funds needed to purchase the home at 5.75%, compounded fortnightly (in addition to the 100 basis point (i.e. 1%) premium), over twenty years, provided that he pays an origination fee of 2.5%. Should Affan take this deal? (Note: ignore part b when you answer this question)