Answer Questions Part A To Part C A borrower can obtain an 80 percent loan with 8 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Altematively, the borrower could obtain a 90 percent loan at an 8.5 percent rate with the same loan term. The borrower plans to own the property for the entire loan term. a. (Show All You Works For Your Calculations) What the increin ental cost of borrowing the additional funds? (Hint: the dollar amount of the loan does not affect the answer.) b. (Show All You Works For Your Calculations) How would your answer change if two points were charged on the 90 percent loan? c. (Show All You Works For Your Calculations) Would your answer to part (b) change if the borrower planned to own the property for only five years? Answer Questions Part A To Part C A borrower can obtain an 80 percent loan with 8 percent interest rate and monthly payments. The loan is to be fully amortized over 25 years. Altematively, the borrower could obtain a 90 percent loan at an 8.5 percent rate with the same loan term. The borrower plans to own the property for the entire loan term. a. (Show All You Works For Your Calculations) What the increin ental cost of borrowing the additional funds? (Hint: the dollar amount of the loan does not affect the answer.) b. (Show All You Works For Your Calculations) How would your answer change if two points were charged on the 90 percent loan? c. (Show All You Works For Your Calculations) Would your answer to part (b) change if the borrower planned to own the property for only five years