In addition to the 2 point origination fee that the Bank will charge you on the $9,000,000 loan described in Problem #1, you are also going to have to pay a $220,000 advisory fee to JLL Financial Services for helping you obtain the loan from the Bank of the Ozarks. What is your effective borrowing cost (EBC) on this loan if you pay it off over its full term (rounded to 2 decimal places)?

What is your EBC if you sell the building after 7 years and pay off the loan at the sale (rounded to 2 decimal places)?

Q1 information: You decide to buy a 60 unit apartment complex in Austin for $15,000,000. You have $6,000,000 to use as a down payment and have applied for a $9,000,000 mortgage loan from Bank of the Ozarks. The loan will have a 25 year term, be fully amortizing, and have fixed interest rate of 6.25% per annum. What is your monthly payment on the loan? Monthly payment = $59,370.24