$14.$ Our borrower, John, in problem $13$ wants to $$roll in$$ or finance the loan fee of $$3,500$ into the

loan amount which would make the loan $$87,500.$ Answer parts $($a$)$ through $($d$)$ from problem

$13$ assuming that the lender agrees to allow the loan fees to be included in the loan amount.

$15.$ A lender is considering what terms to allow on a loan. Current market terms are $9$ percent

interest

for $25$ years for a fully amortizing loan. The borrower, Rich, has requested a loan of

$$100,000.$ The lender believes that extra credit analysis and careful loan control will have to

be exercised because Rich has never borrowed such a large sum before. In addition, the lender

expects that market rates will move upward very soon, perhaps even before the loan is closed.

To be on the safe side, the lender decides to extend to Rich a CPM loan commitment for $$95,000$

at $9$ percent interest for $25$ years; however, the lender wants to charge a loan origination fee to

make the mortgage loan yield $10$ percent. What origination fee should the lender charge? What

fee should be charged if it is expected that the loan will be repaid after $10$ years?