Your local lender offers you a fixed-rate mortgage with the following terms: $250,000 at 5.25% for 30 years, monthly payments. The lender will charge you two discount points and the loan has a 4% prepayment penalty for the first 8 years of life. 

1. What is the annual percentage rate (APR) of the loan?
2. What is the effective cost if you prepay the loan at the end of year five?
3. Suppose that your effective cost over a five-year holding period is 6.50%. What amount of other fees did you pay?
4. If you paid $1,500 in other fees, how many discount points are required to yield an APR of 5.75%?