Use the following to answer questions 12-15: Ed wants to buy a property for $399,900 and wants a CPM loan for 80%. A lender indicates the loan can be obtained for 30 years at 5.5% with an origination loan fee of $1,750 and 2 points. 12 How much will the lender actually disburse? (6) a. $311,772 b. $318,170 c. $319,920 d. $310,172 e. $390,152 13 What is the effective interest cost to the borrower, assuming that the mortgage is paid after 30 years? (6) a. 3.79% b. 6% c. 5.55% d. 5.74% e. 5.78% 14 Assume the lender also imposes a prepayment penalty of 2% of the outstanding loan if the loan is repaid in the first 10 years of closing. If Ed repays the loan after five years, what is the effective interest cost? (6) a. 5.50% b. 6.11% C. 5.75% d. 5.83% e. 6.44%