Suppose that you are purchasing a house (loan amount=$200,000) and inquire about the terms for a 30- year fixed-rate mortgage. You are given the following two quotes: Loan #A: O Annual interest rate of 3.75% with monthly payments and compounding O No discount points O Origination fee of 0.75% o $928 in third-party closing costs Loan #B: 0 Annual interest rate of 3.625% with monthly payments and compounding 0 1.25 discount points o Origination fee of 1% o $18 in third-party closing costs 7) What is the EBC for Loan A if we prepay at the end of the third year? a) 3.85% b) 4.00% c) 4.19% d) 4.45% 8) What is the EBC for Loan B if we prepay at the end of the third year? a) 3.85% b) 4.00% c) 4.19% d) 4.45% Suppose that you are purchasing a house (loan amount=$200,000) and inquire about the terms for a 30- year fixed-rate mortgage. You are given the following two quotes: Loan #A: O Annual interest rate of 3.75% with monthly payments and compounding O No discount points O Origination fee of 0.75% o $928 in third-party closing costs Loan #B: 0 Annual interest rate of 3.625% with monthly payments and compounding 0 1.25 discount points o Origination fee of 1% o $18 in third-party closing costs 7) What is the EBC for Loan A if we prepay at the end of the third year? a) 3.85% b) 4.00% c) 4.19% d) 4.45% 8) What is the EBC for Loan B if we prepay at the end of the third year? a) 3.85% b) 4.00% c) 4.19% d) 4.45%