Question $2(15$ points$)$

You are in the process of building a new home. The home will cost $$384,000$ to construct, and the appraisal your lender obtained indicates a prospective value upon completion of $$390,000.$

Your lender has presented you with the following three loan options:

$\backslash$table$[[$Loan A$,$Loan B$,$Loan C$],[7\mathrm{.}40\%$ interest rate,$7\mathrm{.}20\%$ interest rate,$6\mathrm{.}95\%$ interest rate$],[20-$year amortization,$15-$year amortization,$15-$year amortization$],[$Monthly compounding,Monthly compounding,Monthly compounding$],[70\%$ LTV ratio,$80\%$ LTV ratio,$75\%$ LTV ratio$],[1\%$ loan origination fee,$2$ points,$1\mathrm{.}5\%$ loan origination fee and $2],[,,$points$]]$

Determine the following:

$2$a$.$ The principal amount for each loan.

$2$b$.$ The monthly payment for each loan.

$2$c$.$ The amount of the loan fees for each loan.

$2$d$.$ The net disbursement for each loan.

$2$e$.$ The effective borrowing cost for each loan. $($Don$\text{'}$t forget to annualize the rate.$)$

Your answer:

$\backslash$table$[[,$Loan A$,$Loan B$,$Loan C$],[$Principal$,,,],[$Monthly Payment,,,$],[$Points$/$Loan Fees,,,$],[$Net Disbursement,,,$],[\backslash$table$[[$Effective Borrowing$],[$Cost$]],,,]]$