Assume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of

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Assume a $175,000 mortgage loan and 10-year term. The lender is charging an annual interest rate of 6 percent and 4 discount points at origination. What is the monthly payment assuming that it based on an amortization period of 30 years? What will be the required balloon payment at the end of the 10 year? What is the effective borrowing cost on the loan if it is held to maturity? 

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