Home Mortgage You are buying a new home and need to borrow $200,000. It will be a 30-year mortgage with monthly payments. The rate will be 5% annual. However, the catch is that fees will be $4,000. That means you will sign a loan for $204,000 and that is what the payments will be based on Requirement 1 Calculate the effective monthly and annual rate. Prepare an amortization schedule covering the first 5 years. Requirement 2 Calculate the real effective rate (monthly and annual) over the 30 years based on the payments you will make and a true PV of only $200,000. Prepare an amortization schedule covering the first 5 years. Try this - what will be your loss and what will your effective rate (monthly and annual) be if you pay off the loan after 5 years