Can someone please explain what this actually means:

Assume that Harrick Co. borrows $1,000,000, signing a 20-year mortgage note with a stated interest rate of 10.75 percent as part of the financing for a new plant. If Associated Savings demands 4 points to close the financing, Harrick will receive 4 percent less than $1,000,000or $960,000but it will be obligated to repay the entire $1,000,000 at the rate of $10,150 per month. Because Harrick received only $960,000 and must repay $1,000,000, its effective-interest rate is increased to approximately 11.4 percent on the money actually borrowed. Why is 11.4%? Why are the monthly installments $10,150?