$.$ Consider a loan with the following terms:

$-$ $$200,000$ home

$80\%$ LTV Loan

$9\%$ Interest

$3$ Points

$30$ Years

a$.$ What is the amount of the monthly payments?

PV $=160,000,$ I $=9\%,$ n $=360,$ PMT $=?$

b$.$ What is the amount actually received $($after factoring in the points$)?$

$160,000-3,000=$ $$157,000$

Amount after points $=160,000(160\mathrm{.}00*\mathrm{.}03)$

c$.$ What is the effective interest rate?

Effective interest rate: interest rate with the adjust loan amount $($after points$)$