Question 16 1 pts Luis took a fixed rate mortgage loan 5 years ago for $120 000 at 7% interest rate for 15 years ( monthly compounding loan ) . Now a new lender offers him a loan at 5% for 10 years , with a loan amount being $92 895 , which is exactly the outstanding loan balance of the existing loan . If Luis refinances the existing loan , a prepayment penalty of 3 % will be applied . Also the new loan has a loan fee of $3 000 . If Luis plans to hold the new loan for 10 years and he has to pay the refinancing fees out of his pocket , what is the effective interest rate for the new loan ? 6 41 9% 6.62% 626% 6.12%Question 18 1 pts Peter took a fixed - rate , fully amortizing mortgage loan for a 5 % interest rate for 10 years ( monthly compounding loan ) with the loan amount being $90 000 . The lender allows him to pay $200 monthly payments for the first three year . Assume negative amortization is allowed . What will be he accrued interest or the amount of increased loan balance for the loan three years later from now ? $6,567 57 022 $6 782 57 024Question 19 1 pts Suppose you can get a loan with a below - market interest rate from a home builder . The fully amortizing FRM loan has 4% interest rate , 30 year amortization , $240,000 loan amount . It the home usually sells for $300 000 at what price should the homebuilder sell the home to you in order to earn a market return of 4 5% on the loan ? Assume you will hold the loan for 30 years $313 864 $320 489 $305 689 $329 092