You are in the process of building a new home. The home will cost $445,000 to construct, and the appraisal your lender obtained indicates a prospective value upon completion of $460,000. Your lender has presented you with the following three loan options: Loan A 2.75% interest rate 30-year amortization (monthly) 80% LTV ratio 1% loan origination fee Loan B 2.5% interest rate 30-year amortization (monthly) 85% LTV ratio 3 points Loan C 2.25% interest rate 15-year amortization (monthly) 90% LTV ratio 1.5% loan origination fee and 2 points Determine the following: 2a. The principal amount for each loan. 2b. The monthly payment for each loan. 2c. The amount of the loan fees for each loan. 2d. The net disbursement for each loan. 2e. The effective borrowing cost for each loan. Don't forget to annualize the rate.) 2f. Which loan you should select based on effective borrowing cost. Your answer: Loan A Loan B Loan C Principal Payment Loan fees Net disbursement Effective borrowing cost You are in the process of building a new home. The home will cost $445,000 to construct, and the appraisal your lender obtained indicates a prospective value upon completion of $460,000. Your lender has presented you with the following three loan options: Loan A 2.75% interest rate 30-year amortization (monthly) 80% LTV ratio 1% loan origination fee Loan B 2.5% interest rate 30-year amortization (monthly) 85% LTV ratio 3 points Loan C 2.25% interest rate 15-year amortization (monthly) 90% LTV ratio 1.5% loan origination fee and 2 points Determine the following: 2a. The principal amount for each loan. 2b. The monthly payment for each loan. 2c. The amount of the loan fees for each loan. 2d. The net disbursement for each loan. 2e. The effective borrowing cost for each loan. Don't forget to annualize the rate.) 2f. Which loan you should select based on effective borrowing cost. Your answer: Loan A Loan B Loan C Principal Payment Loan fees Net disbursement Effective borrowing cost