Commercial Mortgage Ann buys a property that costs $1,000. She finances the purchase with a 60% LTV mortgage. She gets a 15-year interest only fixed rate mortgage at an annual interest rate of 10%, with annual compounding and annual payments. n must pay 2 points upfront in mortgage closing costs (as a % of the loan amount). The loan has a 5/4/3/2/1 prepayment penalty structure (she must pay a 5% penalty if she prepays at any time in the first year, 4% penalty in the second year etc). Suppose Ann will sell the property in 3 years, after her 3rd year's mortgage payment and pay off the balance when she sells. 27. Write out the NPV of Ann's mortgage