Loan from a private lender

[Rodney Wright]

#1 The proposed loan amount shall be up to 130,000

#2 The proposed transaction will have a down payment of 41,250

#3 The proposed loan Loan-to-Value (LTV) shall not exceed 80%

#4 The proposed loan term shall be 5 years fixed

#5 The proposed interest rate shall be 7%

#6 The proposed amortization shall be 30 years.

#7 There shall be an orgination fee in the amount equal to 3% (3 points) of the gross financing amount payable to ABC company from escrow at loan closing for the subject property located at the 123 Main Street

Here are my questions.

The proposed loan term shall be 5 years fixed Does this mean after 5 years the rate will change? Then what is purpose of the stament that follows (#6 The proposed amortization shall be 30 years).

I understand the out of pocket cost of 41,250.

Next question is #7 the origination fee in the amount of 3% (3 points)

Does this mean the closing cost is 3% of the 130,000 loan which should be $3900.