A fully amortizing mortgage loan in the amount of $92,758 for 20 years with payments...
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A fully amortizing mortgage loan in the amount of $ for years with payments to be made monthly is offered to a borrower at However, the borrower indicated that he or she wanted to reduce the contract rate by The lender felt comfortable discounting the loan by offering to loan the borrower the same amount of money, $ for years at a fixed rate of with constant payments but only if the borrower would pay the lender an up front fee of $ paid directly to the lender. In addition, if the borrower accepts this loan, the borrower would be required to pay an additional in origination fees to the lender on top of a $ charge to an appraiser for appraisal fees. Assuming the borrower and lender initiate this loan, compute Effective Borrowing Cost expressed in annual terms Express your answer as a rounded to two decimal places
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