A bank is offering a foreclosed condominium for $35,000. Its advertising on this property features a 7% mortgage (assume annual payments) with a 20-year term and no down payment. The bank charges 2 points (2%) for loan origination and closing costs. These fees are added to the initial balance of the loan. Nearly identical condominiums are selling for $33,000. What is the annual payment and what is the true rate for the loan?