In: Finance
Borrower Xi wishes to take a fixed rate CPM of $510,000 that will be fully amortized over 30 years through monthly payments. The competitively quoted mortgage rate is 13.00% with a 3.5000 (%) discount points. The lender expects borrower Xi to prepay the loan after four years. If the lender wishes to attain an effective or All-In yield of 14.91% on this loan, what prepayment penalty (percent, rounded to four decimal places, on loan balance outstanding at the time of prepayment) should the lender charge? [Round the monthly interest rates in decimal to six decimal places, the monthly payments to two decimal places, the loan balances to zero decimal places]