Sherlock Holmes wants to buy a home, which is available for sale that could normally be financed from a lender/bank with a fully amortizing $80,000 loan at a 10% rate with monthly amortizing payments over a 25-year term. The builder is arranging a mortgage buy-down structure through a lender/bank that reduces the payments ($ amount) by 50% for the first two years, by 35% for the third year and by 20% for the fourth year. After the four years, the payments revert to the original/regular rate for the remaining term.

Calculate: a) The buy down fees for the builder b) The yield to the lender/bank ( c) The yield to Sherlock Holmes