Home Value $=$ $$150,000$

Two Financing Alternatives:

#$1$: $80\%$ Loan to Value, $8\%$ Interest Rate, $30$ Years

#$2$: $90\%$ Loan to Value, $8\mathrm{.}5\%$ Interest Rate, $30$ Years Loan repaid back after $10$ years. Calculate the marginal cost of borrowing.