Question: A borrower is purchasing a property and can choose between two possible loan alternatives, The first is a 85% LTV for 25 yea at 9%

A borrower is purchasing a property and can choose between two possible loan alternatives, The first is a 85% LTV for 25 yea at 9% interest and 1 point and the second is a 95\% LTV for 25 years at 9.35% interest and 0 point. Assuming the loan will be repaid in 5 years, what is the incremental cost of borrowing the extra 10% price? 12.42% 11.674 13.39% 10089 A borrower is purchasing a property and can choose between two possible loan alternatives, The first is a 85% LTV for 25 yea at 9% interest and 1 point and the second is a 95\% LTV for 25 years at 9.35% interest and 0 point. Assuming the loan will be repaid in 5 years, what is the incremental cost of borrowing the extra 10% price? 12.42% 11.674 13.39% 10089

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