Mr. Qualify is applying for a $102,200 loan over 25 years at 9% interest. Payments will graduate at 7.6% for the first 3 years, starting with the second year. The monthly payments for the first 5 years are: Year 1: $919.71, Year 2: $979.77, Year 3: $1,041.79, Year 4: $1,106.87, Year 5: $1,174.05. The loan balance after 3 years is $98,119.72. If 4 points are charged, the effective interest rate after 5 years is 8.56%.