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):

1. Monthly payment amount
2. Balloon payment at the end of the loan duration