Evaluate this financing package based on a purchase price of $500,000. (Note: All loan fees are paid separately and not added to the financed portion.) Cost of funds: 8% Amortization period: 30 years Amouunt of funds borrowed: 80% loan to value Loan duration: 20 years (after which balloon payment will be due) Loan fees: origination fee of 1% plus mortgage fees of 5% Calculate (round all answers in parts 'a-d' to the nearest dollar):

Loan amount

Loan fees Monthly payment amount

Balloon payment at the end of the loan duration (if any)

Indicate the holding period most appropriate for this financing package (long-term, intermediate, or short-term)