Suppose that you are considering borrowing $175,000 using a 30-year loan with an annual interest rate of 6% with monthly payments and compounding. The lender is also going to charge you a 1% origination fee and 0.75 discount points. Finally, the loan will also have third-party closing costs of $650.

What will the annual effective borrowing cost for this loan be if you pay off the loan at the end of the 5th year?

Question options:

	a. 6.64%
	b. 6.51%
	c. 7.29%
	d. 7.03%