You borrow a full-amortized mortgage of $200,000 at 5% mortgage rate for 20 years with monthly payments. 1. Assume that you paid 2 points to get the loan, what is the effective cost (mortgage rate) 2. Assume that you paid 2 points to get the loan, what is the effective cost if you pay off your loan after 3 years 3. Assume that you prepay $20,000 after 3 years, and the loan terms does not change (same monthly payment), how long (months) do you need to paid off the mortgage. You have an ARM loan with $100,000 with 30 years. The teaser rate for first year is 3%, monthly payment 4. Assume that the mortgage rate adjusts to 5% in year 2 , what is the monthly payment for year 2 . 5. Assume that the mortgage rate first adjusts in year 6 to 5% (mortgage rate is fixed for the first 5 years), what is the monthly payment for year 6 . You borrow a full-amortized mortgage of $200,000 at 5% mortgage rate for 20 years with monthly payments. 1. Assume that you paid 2 points to get the loan, what is the effective cost (mortgage rate) 2. Assume that you paid 2 points to get the loan, what is the effective cost if you pay off your loan after 3 years 3. Assume that you prepay $20,000 after 3 years, and the loan terms does not change (same monthly payment), how long (months) do you need to paid off the mortgage. You have an ARM loan with $100,000 with 30 years. The teaser rate for first year is 3%, monthly payment 4. Assume that the mortgage rate adjusts to 5% in year 2 , what is the monthly payment for year 2 . 5. Assume that the mortgage rate first adjusts in year 6 to 5% (mortgage rate is fixed for the first 5 years), what is the monthly payment for year 6