Purchase price: $$350,000$

LTV: $95\%$

Term & Am: $20$ years

Interest Rate: $4\mathrm{.}0\%$

Holding period: $5$ years

Closing Costs

Discount point: $1\mathrm{.}00\%($paid to lender$)$Appraisal: $$300($paid to appraiser$)$Survey: $$250($paid to surveyor$)$Underwriting fee: $$500($paid to lender$)$Origination fee: $\mathrm{.}75\%($paid to lender$)$PMI $\mathrm{.}70\%$ of original mortgage amount, paid per year on a monthly basis to the insurer

$1.$What it the OMB at the end of the holding period?

$ $242,567$

$242,428$

$272,397$

$263,466$

$258,868$

$2.$How much principal will be paid during the holding period?

$75,572$

$63,117$

$34,433$

$73,632$

$3.$Calculate the effective borrowinf cost$($EBC$)$

$5\mathrm{.}37\%$

$5\mathrm{.}34\%$

$5\mathrm{.}61\%$

$5\mathrm{.}00\%$

$4.$ Calculare the lenders yield

$4\mathrm{.}72\%$

$4\mathrm{.}52\%$

$4\mathrm{.}89\%$

$4\mathrm{.}40\%$

$5.$ How much total interest will be paid over the holding period?

$75,213$

$71,439$

$60,790$

$69,054$

$6.$ What is your monthly payment$($principal and interest$)?$

$2,331$

$2,471$

$2,179$

$2,015$