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Borrow $150,000 with a 20 year monthly payment fixed mortgage at 6%. Origination fees total 4...

Borrow $150,000 with a 20 year monthly payment fixed mortgage at 6%. Origination fees total 4 points (4%). What’s the Effective Annual Rate of the loan when considering the fee?

1. 7.42% 2. 0.5427% 3. 5.49% 4. 6.512%

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