TIME 0 (NOW) Mortgage Loan (=PV) -Origination Fees (due to Discount Points) -Other Closing Costs =Loan Disbursement CONSTANT MONTHLY PAYMENT Mortgage Loan (=PV) Mortgage Rate (i/Y), % # of Months (n) FV Monthly Payment (PMT) Prepayment after # of Payments Caculation of Loan Balance + Prepay Penalty at Prepay Time Method: FV Method PMT Mortgage Rate (i/Y), % n (=Number of Payments made) PV (=Initial Mortgage Loan Amount) FV1 (=Loan Balance at Prepay Time] + $Prepay Penalty at Prepay Time =FV2 [=Loan Balance + $Prepay Penalty at Prepay Time] All-In (Effective) Cost or Yield Calculation: PV (=Loan Disbursement after Points and Fees) PMT n (=prepay after # of payments) FV (=Loan Balance at Prepayment+Prepay Penalty) All-In (Effective) Cost or Yield/Y, %=? SINGLE/JUMBO FIRST MORTG SECOND MORTG COMBO